E26-21

Using the time value of money Sharon wants to take the next five years off work to travel around the world. She estimates her annual cash needs at $34,000 (if site needs more, site will work odd jobs). Sharon believes she can invest her savings at 8% until she depletes her funds. Requirements How much money does Sharon need now to fund her travels? After speaking with a number of banks, Sharon learns she will only be able to invest her funds at 6%. How much does she need now to fund her travels