mainly part iii

3. Jennifer and Juan graduated from UGA and landed a job in the same company with a starting salary of $60,000 per year. They all decided to start a 401K investment plan at S500 every month. Juan bought a new house in the suburbs for $350,000. Because of outstanding collections on his credit, he was given a loan of 6% per year compounded monthly for 30 years. He also bought a brand-new BMW at $35,000 at 6% per year compounded monthly for 5 years. Juan plans to renew his car every five years with the same deal. That is, he will have the same monthly car payment for the next 30 years. Jennifer however decided to buy a smaller house for $200,000, got a home mortgage loan of 3% compounded monthly due to her excellent credit. She also bought a Honda Accord for $25,000 with 3% per year financing compounded monthly for five years. She also plans to renew her car every five years and pay the same monthly payment for the next 30 years. Jennifer decided to top up her monthly 401K investment with the difference between her combined home and car monthly payments and that of Juan's. After 30 years both Jennifer and Juan plan to retire and cash out their 401K. Assume, their 401K funds will yield 6% per year compounded monthly. i. How much will Jennifer cash out from her 401K. Name Score ii. How much will Juan cash out from his 401K. iii. If they both invest their cash out from the 401K in a less risk fund that pays 3% per year compounded monthly and plan to do a monthly withdrawal from this fund for 30 years until the fund completely depletes: a. how much will Jennifer receive every month? b. how much will Juan receive every month