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a) Assuming she can earn 4% after taxes on the college funds, how much of the $100,000 from Chad's life insurance proceeds would Kerry have

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a) Assuming she can earn 4% after taxes on the college funds, how much of the $100,000 from Chad's life insurance proceeds would Kerry have to set aside for Logan and Liliana's college educations? 5. After reading your text and other readings on Blackboard, you now probably realize that Kerry's financial goals in the original case need to be refined to serve as the basis for her financial plan and cash budget. Upon further thought, she has restated her financial goals as follows: To accumulate $50,000 within 5 years for Logan's college education. To accumulate $90,000 for Liliana's college education within the next 11 years. To save $10,000 for a new car purchase within 5 years. Kerry plans to give Logan the Ford when he turns 17 and Kerry will drive the new car. To have $40,000 in 12 years to start her own business. To contribute $4,200 each year to her 401(k) retirement account. To establish a regular savings program in an amount that will accomplish these stated goals. Kerry wants to use the $100,000 from the Life Mutual Insurance policy to fund the college goals. If there is not enough money to fund the college goals, she will use her own money to save for Liliana's college. Questions: a) Assuming she can earn 4% after taxes on the college funds, how much of the $100,000 from Chad's life insurance proceeds would Kerry have to set aside for Logan and Liliana's college educations? b) Is the $100,000 life insurance proceeds provide enough to fulfill each of the college goals in part 5a? If not, how much will she need to add of her money to meet the college goals? c) If she can earn 2% after taxes on the car fund, how much would she have to set aside annually for that goal? d) If she can earn 6% after taxes on the business fund, how much would she need to save annually for that goal? e) How much total will she have to save annually to meet the all of the goals? Remember to include the 401(k) goal in this

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