please, Explain everything, show every steps and every formulas used in excel.

Gabrielle and Dwyane have hired you to deliver some financial advice.

They are 25 years old and have two children, ages 2 and 3, and live in

Denver, Colorado. They work as engineers at a transportation company

and currently earn $75,000 each (after-tax).

They have stated that their financial goals are to:

1. Establish an adequate emergency fund

2. Pay off current debts

3. Purchase a 3 bedroom, 2 bathroom home in the Highlands Ranch area, where

this type of home averages about $300,000 (they want to put down 20%

as a down payment and finance the rest using a 6%, 30-year mortgage)

4. Create a college fund for their children (they plan for each child to enroll

at the University of Colorado when they turn 18 and have estimated this will

cost $50,000 for each child)

5. Establish an investment plan that will grow to $2,500,000 when they retire at age 65.

Family Financial Information

Assets

Checking $8,000

Savings $75,000

Cars $30,000

Liabilities

Student Loans $40,000

Car Loans $15,000

Credit Cards $2,000

Monthly Outflow:

Rent $1,200

Insurance $100

Utilities $250

Food $500

Daycare $400

Kid Essentials $100

Gas/Maintenance $250

Credit Card Payments $200

Student Loan Payments $250

Car Payments $500

Entertainment $150

Deliverables

QUESTIONS:

1. Given the age, marital status, household makeup, and employment situation of this family, list the specific short-term and long-term financial goals and activities this family should be focused on

Be specific (For example, what dollar amount should they have in their emergency fund? Why that amount? Etc.)

2. Explain to this family how safety, risk, income, growth, and liquidity affect an investment program. Be sure to mention the specific types of risk that are inherent to investments.

3. Recommend the percentage of growth assets that this family should be invested in given their investment horizon. Explain how you came up with this number and what types of growth assets are available to them.

4. Recommend some steps this family could take to start chipping away at their current debt balances.

5. Assuming a 7% return on investments, show this family how much they should be investing each month to fund their education and retirement goals (show your TVM calculations). Be sure to explain to them how various economic conditions could derail these goals, using the current economic climate as an example.

6. When talking with Dawayne, you have found his risk tolerance to be a bit on the aggressive side. Compare the advantages and disadvantages of investments that carry less risk (like bonds) to those that carry more risk (like stocks and real estate). Be sure to mention the relationship between bond prices and interest rates given the unusual current economic climate. Further, be sure that Dawayne understands how to compare the returns of municipal bonds to the returns of other investment products.

7. Given that this family will likely need to invest in stocks to meet their long-term financial goals, explain the long-term and short-term stock investment strategies that are available to them. Be sure to include the benefits and risks of these strategies.

8. Calculate the monthly payment this family would need to make on their mortgage (show your TVM calculations). Explain how much interest will be paid over the life of this loan. Additionally, explain what would change if the family were to add $500 to this payment each month.

9. Recalculate this family's monthly outflow assuming your recommendations are implemented. Be sure to presentthis new "budget" line-by-line, in the same format presented above. (Note: if your new monthly outflow is greater than your monthly inflow from their incomes, please adjust your recommendations as they do not have any interest in changing employment or taking on additional jobs.)

please give answers for each question

and show the formulas used