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?