You think you will need $40,000 to purchase an investment property in 24 months. Assuming you can earn 4% on a low-risk investment over this time, answer the following:

1. How much would you have to set aside today to have $40,000 in 24 months (assume monthly compounding).
2. How much would you need to set aside (i.e. save and invest) each month for the next 24 months to reach the goal?
3. If you started today with $5,000 how much would you need to set aside each month for the next 24 months to reach the goal?