Question #5 Personal Finance: I am having problems reasoning with how the answer to line 1 of Ryan's monthly savings was computed. FV=3,091.25 was not divided by 12 to come up with $250.60 for the required monthly savings. Instead, I needed to CPT for PMT to get $250.60. On my financial calculator when I input PV=0, 0.25=I, 12=N, and 3,091.25=FV, I get PMT is $254.08. The answer conveyed on the worksheet, however, is $250.60. What am I doing wrong? Help fill in the table.

Case Study Ryan is a 22-year-old man graduated this year from Shepherd with a B.Sci. degree in Computer Science. He works for a tech company as a design engineer. He earns S50,000 for the first year and will receive a moderate 4% increase per year for the next four years. By then, his job is due for a review for promotion. His supervisor told him that if he would be promoted to team leader, he would lead a team of 10 and the salary would be 50% more. Besides his career, Ryan has a number of goals in the near and distant future: l. He wants to study an MBA program in 3 years so he can develop his leadership and management skills for the future. The program requires a one-year-long study and costs S30,000 2. He likes to buy an entry level jet ski next year. To reduce the cost, he is considering buying a used one for S3,000 3. He is in a stable relationship with Judy and wants to set aside $10,000 for marriage and the start of a new family in 6 years 4. His parents had helped pay for his collegiate education and he feels he must do something to show his love to them. He plans to buy a $6,000-worth vacation package to Italy for them when they retire in 10 years 5. Although he just started his career, he wants to accumulate S100,000 by retirement at 67. As Ryan's financial planner, you give him the following economic information 1. Inflation rate is expected to be 3% per annum (0.25% per month). Prices of goods and services will increase accordingly to reflect the inflation 2. The return to a reasonably safe investment portfolio stands at 6% per annum (0.5% per month). We assume that Ryan's savings will continue to earn interest until expended. Questions l. Create a table to find out Ryan's monthly savings. Use table in Book 1 page 34 as a reference Goals Year Current cost Inflation adjusted amount Reg. monthly savin of purchase for the item $3,000 3,000 x (1 0.25% 3,091.25 Jet Ski 250.60 MBA Marriage Vacation Retirement