E26-21 Using the time value of money Janice wants to take *

| June 1, 2016

Question
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.0/msohtmlclip1/01/clip_image007.jpg”>E26-21 Using the time value of money

Janice wants to take the next five years off work to travel around the world. She

estimates her annual cash needs at $28,000 (if she needs more, she will work odd

jobs). Janice believes she can invest her savings at 8% until she depletes her funds.

Requirements

1. How much money does Janice need now to fund her travels?

2. After speaking with a number of banks, Janice learns she will only be able to

invest her funds at 4%. How much does she need now to fund her travels?

Problem must be completed in Microsoft Excel

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