Only Looking for help for the two main charts. Could you also please include the excel formulas
Question:
sarah wants to start her own business in 10 years. she needs to accumulate $200,000 (today's dollars) in 10 years to sufficiently start her business. she assumes that inflation will average 4%, and that she can earn a 9% compound annual after-tax return on her investments. sarah wants to increase her annual saving with inflation adjustment. what will sarah's payment be at the end of the second year?
Part A: what is annual equal saving?
Part B: they will increase their savings annually at the rate of inflarion. how much should they save at the end of year 2?
Part C: they will increase their savings annually at the rate of inflation. how much should they save at the beginning of year 2?
Personal Financial Planning
ISBN: 978-1305636613
14th edition
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk