Marty and Laura are a young couple which has accumulated quite a bit of credit cards debtand college loans over the year, but were making the minimum payments on time. As theyare thinking of expanding the family, they realized that they should probably start thinkingmore seriously about their future and saving up some money towards their child’s educationas well as their pension.The current annual costs of a college education averages $20,000 and they increase byabout 4% every year.Marty and Laura would also like to be able to buy a two-story, three bedrooms house theyhave seen which is currently listed at $140,000 and they are very determined to retire at theage of 65 as they want to tour the world after that.The table below presents a summary of their current financial information:
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