Amanda wants to take the next four years off work to travel around the world. She estimates her annual cash needs at $31,000 (if she needs more, she will work oddjobs). Amanda believes she can invest her savings at 12% until she depletes her funds.

Requirement 1. How much money does Amanda need now to fund her travels? (Round your answer to the nearest whole dollar.)

With the 12% interest rate, Amanda needs $

.

Requirement 2. After speaking with a number of banks, Amanda learns she will only be able to invest her funds at 6%. How much does she need now to fund hertravels? (Round your answer to the nearest whole dollar.)

With a 6% interest rate, Amanda would need $

.

If Amanda's savings are earning a lower interest rate (6%), she will need to save

less

more

to be able to withdraw $31,000per year.