Here is the background information

After reading Chapters 1, 2 and 3, you probably realize that Megan and Kevin's financial goals

are not defined well enough in the original case to serve as the basis for their financial plan

and cash budget. Upon further review, Megan and Kevin have restated their financial goals

in order of priority as follows:

Pay off all existing credit card balances within the next 2 years.

Have liquid assets equal to 3 month's net salary within the next 2 years for an Emergency fund.

Save $10,000 for the purchase of a second car in 3 years.

Buy a house within 5 years. Megan and Kevin plan on using the inherited funds that are currently invested in the Fidelity Magellan mutual fund for this goal.

Save $6,000 for a down payment on a new car to replace the Explorer within 5 years.

Increase contributions to Kevin's 401(k) plan from 5% to 8% of his gross salary.

Have enough accumulated in an account to provide Kevin's father $12,000 a year during his retirement years. They expect Lyle will retire in 20 years at age 70 and will live 15 years after retirement. Kevin and Megan would like to have all the money accumulated by the time Lyle retires.

Establish a regular savings/investment program to accomplish these goals.

The Question is below:

Assume that Megan and Kevin 6% (after inflation and taxes on the car goals). In figuring the savings required for Kevin's father's retirement fund, Megan and Kevin assume that they could earn 6.5% (after taxes and inflation ) on the money once his father retires. While they are accumulating the money, they feel they can take more risk and earn 8% after taxes and inflation. Using time value calculations, how much would Megan and Kevin have to save this year to be on track in meeting their goals for the second car, the down payment for a new car to replace the Explorer, and the fund for Kevin's father's retirement years?