Question 6 (20 points) Joan earns a salary of $110,000 per year, and she expects to receive increases at a rate of 4% per year for the next 30 years, she is purchasing a home for $380,000 at 7% for 30 years (under a special veterans preference loan with 0% down). She expects the home to appreciate at a rate of 3% per year. In addition, she will also save 10% of her gross salary in savings certificates that earn 5% per year. Assume that her payments are made annually. If inflation is assumed to have a constant 5% rate, what is the value ( in year 1 dollars) of each of Joan's two investments at the end of the 30-year period? Use a before tax analysis Savings account: $274,536 Home: $213,411 Savings account: $295,823 Home: $277,901 Savings account: $305,615 Home: $394,793 Savings account: $312,867 Home: $425,986