Janet wants to take the next five years off work to travel around the world. She estimates her annual cash needs at $30,000 (if she needs more, she’ll work odd jobs). Janet believes she can invest her savings at 8% until she depletes her funds.
1. How much money does Janet need now to fund her travels?
2. After speaking with a couple of banks, Janet learns she’ll only be able to invest her funds at 6%. How much does she need now to fund her travels?