Be a Financial Planner-Discussion Case 1 This case is available in My FinanceLab. Jinhee Ju. 27. just received a promotion at work that increased her

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Be a Financial Planner-Discussion Case 1 This case is available in My FinanceLab. Jinhee Ju. 27. just received a promotion at work that increased her annual salary to $37,000. She is eligible to participate in her employer's 401(k) plan to which the employer matches dollar-for-dollar workers' contributions up to 5 percent of salary. However, Jinhee wants to buy a new $25,000 car in 3 years and she wants to save enough money to make a $7,000 down pay ment on the car and finance the balance. Also in her plans is a wedding, Jinhee and her boyfriend, Paul, have set a wedding date 2 years in the future, after he finishes medical school. Paul will have $100,000 of student loans to repay after graduation. But both Jinhee and Paul want to buy a home of their own as soon as possible. This might be possible because at age 30, Jinhee will be eligible to access a $50,000 trust fund left to her as an Inheritance by her late grandfather. Her trust fund is invested in 7 percent government bonds. Questions 1. Justify Jinhee's participation in her employer's 401(k) plan using the time value of money concepts 2. Calculate the amount that Jinhee needs to save each year for the down payment on a new car, assuming she can earn 6 percent on her savings. Calculate how much she will need to save on a monthly basis assuming monthly compounding. For each scenario, how much of her down payment will come from interest eamed