Your clients are considering buying a new Kia Telluride in four years. Theyll want the new model at that time but want to plan on paying $46,000 in todays dollars at that time. They can earn 5.50% in the account they plan to save the money in, and inflation on new car prices is expected to be 2.85%. They want to know what serial payment (savings amount) they should make at the end of each of the next four years so that in four years time, they have enough in their account to buy the car with cash.

a. What is the estimated cost of the car at the end of four years?

b. How much should they deposit into their investment account at the end of year 1?

c. How much should they deposit into their investment account at the end of year 2?

d. How much should they deposit into their investment account at the end of year 3?

e. How much should they deposit into their investment account at the end of year 4?

f. How much in total principal must they save into their account over the four years to have enough cash to buy the car?

g. How much in total principal must they save into their account over the four years to have enough cash to buy the car if they already had $10,000 in savings?

h. Calculate the annual payment of a $285,000 home with 22% down at an interest rate of 4.20% with 30 years of payments.

i. Calculate the monthly payment of a $245,000 home with 25% down at an interest rate of 4.05% with 30 years of payments.