Elliot makes $250,000 a year and pays 30% taxes on $150,000 and 35% on his remaining salary. His expenses are $110,000 (per year). He wants to invest a fixed amount EVERY day into an investment fund for 5 years and he hopes to get a 12% return.
What is the maximum amount he can invest every day? (Find the annual investment amount and divide by 365).
What will be the worth of his portfolio after 5 years?
After 5 years, Kassidy’s income increases to $300,000. He wants to reinvest for another 5 year, but this time, his return will be 10% and his expenses have increased by 15%. What will be the worth of his portfolio after 5 years (total of 10 years)?
What will the Present Value of his portfolio, assuming a 6% discount rate and NPER is 10 years?