Question: 6.Studebaker has carefully analyzed how much he can afford to invest.He has decided that (1)he has $40,000 of excess cashand (2)his annual after-tax income could

6.Studebaker has carefully analyzed how much he can afford to invest.He has\ decided that (1)he has $40,000 of "excess cash"and (2)his annual after-tax\ income could drop by $4,500 per year without any "lifestyle disruptions."\ (a)Redo your answer to question 2 assuming that the before-tax money\ market rate is 5 percent per year and interest is compounded monthly.\

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