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Part Ill: Preparing cash budget Landon and Naomi Gray are preparing their cash budget. Help...

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Part Ill: Preparing cash budget Landon and Naomi Gray are preparing their cash budget. Help the Grays reconcile the following differences, giving reasons to support your answers. 1. Their only source of income is Landon's salary, which amounts to $5,000 a month before taxes. Landon wants to show the $5,000 as their monthly income, whereas Naomi argues that his take-home pay of $3,917 is the correct value to show. 2. Naomi wants to make a provision for fun money, an idea that Landon cannot understand. He asks, "Why do we need fun money when everything is provided for in the budget?" Part IV: Calculating present and future values Use future or present value techniques to solve the following problems. 1. Starting with $15,000, how much will you have in 10 years if you can earn 6 percent on your money? If you can earn only 4 percent? 2. If the average new home costs $275,000 today, how much will it cost in 10 years if the price increases by 5 percent each year? 3. If you can earn 4 percent, how much will you have to save each year if you want to retire in 35 years with $1 million

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