If he invests the $$3,000$ today, the terminal value of this initial investment in $5$ years $($earning an average $5\%$ return$)$ will be $-$ This means that he must accumulate the remaining $)$ through his annual savings plan to obtain the full $$30,000$ to cover his expenses for the year. Still assuming an average return on investment of $5\%,$ the additional yearly investment required to reach Felix's targeted financial goal within $5$ years is $$ Suppose instead that Felix had no capital saved and thus needed to accumulate the entire $$30,000$ in the next $5$ years. In this case, his annual contribution would have to be $1.$

When Felix starts with an initial investment of $$3,000,$ the total amount that he ends up contributing to accumulate $$30,000$ is equal to the initial investment plus the additional yearly payments, for a total of $.$ When he starts with no initial capital contribution, the amount he ends up contributing is equal to the sum of all annual contributions you calculated in the no$-$initial$-$capital scenario, for a total of

$$

Once Felix has determined the annual amount he needs to save, the next step toward achieving his goal is coming up with an investment plan.

True or False: The appropriate investment plan depends only on the total amount of money he intends to save, not on the investment objective.

$$ True

False