4. You are a student at Webster University. Once you obtain your MBA degree you stand to increase your level of income substantially, which will allow you to save enough money on a monthly basis to have at least $1,000,000 in liquid savings by the time you retire at age 65. Calculate how much you will need to save each month, assuming you are now 30 years old, in order to have $1,000,000 by retirement. Assume that moderately aggressive average rates of return from financial markets are 8.0% per year. Afterward, calculate how much you would need to save each month assuming aggressive rates of return of 13.0% per year.

5. Using the "moderately aggressive" and "aggressive" scenarios above, if you could save $500 per month, how much would you then expect to have at retirement?

6. You are buying a home for $400,000. You can afford to put $20,000 down. Assuming you finance the balance over a 30 year period at an interest rate of 4.0%, what would your monthly payment be (on the mortgage alone)?