Samantha O'Reilly has come to your office for a second opinion about her individual long-term disability policy.
Question:
a. If her current annual salary is $43,000, her taxes are $8,000, and she just barely manages to fund her Roth IRA each year with $5,000, how much of an emergency fund would she need to meet only her living expenses?
b. How long would it take her to achieve the emergency fund goal above if she $18,500 saved, invests $300 per month, and earns an annual percentage yield or AP percent after taxes in her money market mutual fund. b. currently has Y of 4.25
c. If she could reduce her elimination period to nine months for an additic $10 per month, how much would she need to save on a monthly basis i market account to reach her emergency fund goal within twelve months? C this savings payment if she suspended her IRA contribution for one money months? Could she afford year?
Financial Algebra advanced algebra with financial applications
ISBN: 978-0538449670
1st edition
Authors: Robert K. Gerver