Question: Tessa wants to take the next six years off work

Tessa wants to take the next six years off work to travel around the world. She estimates her annual cash needs at $ 31,000 (if she needs more, she’ll work odd jobs). Tessa believes she can invest her savings at 12% until she depletes her funds.

Requirements
1. How much money does Tessa need now to fund her travels?
2. After checking with a number of banks, Tessa learns she’ll be able to invest her funds only at 8%. How much does she need now to fund her travels?


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  • CreatedAugust 27, 2014
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