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You have just completed your MBA and accepted a position with a financial consulting company. Among other responsibilities, you have been assigned to one of
You have just completed your MBA and accepted a position with a financial consulting company. Among other responsibilities, you have been assigned to one of the companys clients, Emma Golding, who needs some financial planning advice. Emma is recently widowed and just received a taxfree life insurance payment of $ Emma also has $ tucked away in a savings account. She has three main goals in mind. First, she wants to provide for her only childs college education. The child will attend college in years from today and will require tuition payments twice per year over each of the childs four years in college. The payments must be made at the beginning of the year and midway through each year. The first years semiannual payments are each $ the second years semiannual payments are each $ the third years semiannual payments are each $ and the fourth years semiannual payments are each $ Emmas second goal is to purchase a classic s vintage automobile which will cost $ and be paid for in full immediately. Her third goal is to retire in years from now and draw $ each month over her planned retirement over the following years. These funds will need to be available at the beginning of each month. Under the assumption Emma can make annual end of year deposits into an account offering a percent rate of return after taxes before and during retirement, how much would those deposits have to be in order to achieve her financial objectives? Clearly show your work.
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