Discussion Case 1 This case is available in MyLab Finance. 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, in 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 payment 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. (a) Calculate the amount Jinhee needs to save each year for the down payment on a new car assuming she can earn 6 per cent per year, assuming annual compounding. (b) Do you think that Jinhee Ju would need to save more or less if she saved and invested on a monthly basis with monthly compounding rather than a yearly basis with annual compounding? Why