Question: Please Refrain from using Excel Thanks! 4) a) You decide that your family would be comfortable living on an annual income of $150,000, growing at

Please Refrain from using Excel Thanks! 4) a) You decide that

Please Refrain from using Excel Thanks!

4) a) You decide that your family would be comfortable living on an annual income of $150,000, growing at 4% per year. You'd also like to continue generating this cash flow for your descendants, forever. With interest rates of 8%, how much wealth would you need today to provide this income starting with S150,000 one year from now? b) Suppose all income is taxed at 20%. How would this (if at all) change your answer to a)? Assume that you still feel 4% growth and $150,000 (after-tax) income is sufficient. Show a calculation and briefly explain

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