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Is eBook Financial planning case 5-2 Victor and Maria Hernandez Need to Save Money Fast The Hernandez family is experiencing some financial pressures, even though the couple has a combined income of 585,000. Also, their eldest son, Joseph, will start college in only three years, Maria is contemplating going to work full time to add about $31,000 to the tray's annual income a. How will this change in income affect the family's emergency fund needs? The input in the hox below will not be greded, but may be reviewed and considered by your instructor four b. How much should they save annually for the next three years if they want to build up Joseph's college fund to $35,000, assuming a 5 percent rate of return and ignoring taxes on the interest? Round your answer to nearest dollar. (Hint: Use Appendix or visit the Gama Forgue companion website) Round Future value of a series of Equal Amounts in intermediate calculations to four decimal places 6. Given their 25 percent marginal tax rate, what is the Hernandezes after tax return on their savings? Round your answer to two decimal places Given their after tax return, how much would they need to save each year? Round your answer to nearest dolar, Round Future value of a series of equal amounts in intermediate calculations to four decimal places 5 4. What savings options are open to the Hernandezes that could reduce or eliminate the effects of taxes on their savings program The input in the box below will not be graded, but may be reviewed and considered by your instructor

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