Evaluating a savings goal. Over the past several years, Catherine Lee has been able to save regularly. As a result, she has 54,188 in savings and investments today. She wants to establish her own...

Evaluating a savings goal. Over the past several years, Catherine Lee has been able to save regularly. As a result, she has
54,188 in savings and investments today. She wants to establish her own business in 5 years and feels she will need
100,000 to do so.

a. If she can earn 4 percent on her money, how much will her54,188 in savings/investments be worth in 5 years? Will Catherine have the
100,000 she needs? If not, how much more money will she need?

b. Given your answer to part a, how much will Catherine have to save each year over the next 5 years to accumulate the additional money? Assume that she can earn interest at a rate of 4 percent.

c. If Catherine can afford to save only
4,000 a year, then given your answer to part a, will she have the $100,000 she needs to start her own business in 5 years?