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• To have a total of $15,000 accumulated in their money market account in 2 years to be used as their emergency fund. They currently have $5,453 accumulated in Money Market Fund.
• To save $5,000 for the down payment on a new car in 2 years.
• To invest $6,000 each year in IRAs for retirement in 25 years.
• To have $90,000 for their childs college education in 18 years. They have targeted the T. Rowe Price Equity Income stock (now worth $9,672) for this goal.

Use future value calculations to calculate the amount that must be saved annually for their emergency fund, car, college, and remodeling goals. Assume Brad and Natalia can earn 2% after taxes on their emergency fund and car goals and 6% on the college fund. You will not use future value calculations when figuring the amount of savings required to meet their 401(k) and retirement fund goals since you were told the annual contribution they wanted to make. Remember to label each goal and add the required sums for each goal together to find the TOTAL ANNUAL SAVINGS required to meet their goals.

How much would Brad and Natalia have to save in 2020 to be on track in meeting their goals for:

• Their emergency fund (remember they already have some money in a money market account)
• Down payment on the new car
• College education fund (remember they already have some money in the T. Rowe Price Equity Income stock)
• Their retirement investment fund (IRAs)

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