1. Use Worksheet 11.1 to determine whether the Useltons have enough money right now to meet their children’s educational needs. That is, will the $45,000 they’ve accumulated so far be enough to put their children through school, given they can invest their money at 6 percent? Remember, they want to have $40,000 set aside for each child by the time each one starts college.
2. Regarding their retirement nest egg, assume that no additions are made to either the $50,000 they now have in mutual funds or to the $20,000 in the retirement account. How much would these investments be worth in 20 years, given that they can earn 6 percent?
3. Now, if the Useltons can invest $6,000 a year for the next 20 years and apply all of that to their retirement nest egg, how much would they be able to accumulate given their 6 percent rate of return?
4. How do you think the Useltons are doing with regard to meeting their twin investment objectives? Explain.

  • CreatedFebruary 13, 2015
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