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BA 30 - Ch 11 HW Thoroughly-answer the following questions. Upload your completed assignment to receive credit. The Woodsons Struggle with Two Investment Goals Like

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BA 30 - Ch 11 HW Thoroughly-answer the following questions. Upload your completed assignment to receive credit. The Woodsons Struggle with Two Investment Goals Like many married couples, Damian and Brandi Woodson are trying their best to save for two important investment objectives: (1) an education fund to put their two children through college; and (2) a retirement nest egg for themselves. They want to set aside $100,000 per child by the time each one starts college. Given that their children are now 10 and 12 years old, Damian and Brandi have 6 years remaining for one child and 8 for the other. As far as their retirement plans are concerned, the Woodsons both hope to retire in 20 years, when they reach age 65. Both Damian and Brandi work, and together, they currently earn about $90,000 a year. The Woodsons started a college fund some years ago by investing $6,000 a year in bank CDs. That fund is now worth $65,000. They also have $50,000 that they received from an inheritance invested in several mutual funds and another $20,000 in a tax-sheltered retirement account. Damian and Brandi believe that they'll be able to continue putting away S6,000 a year for the next 20 years. In fact, Brandi thinks they'll be able to put away even more, particularly after the children are out of school. The Woodsons are fairly conservative investors and feel they can probably earn about 6 percent on their money. (Ignore taxes for the purpose of this exercise.) Critical Thinking Questions Use the attached worksheet to determine whether the Woodsons have enough money right now to meet their children's educational needs. That is, will the CDs and inheritance they've accumulated so far be enough to put their first child through school without additional investment, given they can invest their money at 6 percent? (answer yes or no) Critical Thinking Questions Use the attached worksheet to determine whether the Woodsons have enough money right now to meet their children's educational needs. That is, will the CDs and inheritance they've accumulated so far be enough to put their first child through school without additional investment, given they can invest their money at 6 percent? (answer yes or no) Will the CDS and inheritance they've accumulated so far be enough to put their first and second child through school without additional investment, given they can invest their money at 6 percent? (answer yes or no) What is the future value (at the point in time when the Woodsons want to retire) of the $20,000 retirement account if it grows by 6% per year? (type the value) Is the $20,000 that currently sits in their retirement account enough to fund their retirement? Assume they will need $500,000 to fully fund their retirement. (answer yes or no) Regarding their retirement nest egg, assume that no additions are made to any accounts until they've funded their children's educations. If they added $6,000 per year to their retirement account AFTER their children's college is funded, how much would their retirement account be worth when they want to retire at age 65? (type the number) Will they have enough to retire if they need $500,000? (answer yes or no) How do you think the Woodsons are doing with regard to meeting their investment objectives? Explain. (type 8 to 10 sentences) BA 30 - Ch 11 HW Thoroughly-answer the following questions. Upload your completed assignment to receive credit. The Woodsons Struggle with Two Investment Goals Like many married couples, Damian and Brandi Woodson are trying their best to save for two important investment objectives: (1) an education fund to put their two children through college; and (2) a retirement nest egg for themselves. They want to set aside $100,000 per child by the time each one starts college. Given that their children are now 10 and 12 years old, Damian and Brandi have 6 years remaining for one child and 8 for the other. As far as their retirement plans are concerned, the Woodsons both hope to retire in 20 years, when they reach age 65. Both Damian and Brandi work, and together, they currently earn about $90,000 a year. The Woodsons started a college fund some years ago by investing $6,000 a year in bank CDs. That fund is now worth $65,000. They also have $50,000 that they received from an inheritance invested in several mutual funds and another $20,000 in a tax-sheltered retirement account. Damian and Brandi believe that they'll be able to continue putting away S6,000 a year for the next 20 years. In fact, Brandi thinks they'll be able to put away even more, particularly after the children are out of school. The Woodsons are fairly conservative investors and feel they can probably earn about 6 percent on their money. (Ignore taxes for the purpose of this exercise.) Critical Thinking Questions Use the attached worksheet to determine whether the Woodsons have enough money right now to meet their children's educational needs. That is, will the CDs and inheritance they've accumulated so far be enough to put their first child through school without additional investment, given they can invest their money at 6 percent? (answer yes or no) Critical Thinking Questions Use the attached worksheet to determine whether the Woodsons have enough money right now to meet their children's educational needs. That is, will the CDs and inheritance they've accumulated so far be enough to put their first child through school without additional investment, given they can invest their money at 6 percent? (answer yes or no) Will the CDS and inheritance they've accumulated so far be enough to put their first and second child through school without additional investment, given they can invest their money at 6 percent? (answer yes or no) What is the future value (at the point in time when the Woodsons want to retire) of the $20,000 retirement account if it grows by 6% per year? (type the value) Is the $20,000 that currently sits in their retirement account enough to fund their retirement? Assume they will need $500,000 to fully fund their retirement. (answer yes or no) Regarding their retirement nest egg, assume that no additions are made to any accounts until they've funded their children's educations. If they added $6,000 per year to their retirement account AFTER their children's college is funded, how much would their retirement account be worth when they want to retire at age 65? (type the number) Will they have enough to retire if they need $500,000? (answer yes or no) How do you think the Woodsons are doing with regard to meeting their investment objectives? Explain. (type 8 to 10 sentences)

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