Colin has just graduated from his local university with a degree in Business Administration. Colin has learned that he must be disciplined in his approach to achieving his life goals. Colin knows that a good financial goal must be SMART (specific, measurable, attainable, realistic and time-delimited). Colin wants to assess whether or not his goal of home-ownership is SMART!Colin would like to own a modest home. At 22 years of age, he would like to have enough money saved for a down payment on the home of his dreams by age 30 (8 years from now).In order to qualify for a CMHC mortgage on a home he must save 25% of the purchase price. The home of his dreams, in today’s dollars would cost $300,000. This means his down-payment savings goal is $75,000 in eight years.At the present time, Colin has $15,000 saved in his TFSA (tax-free savings account).you don’t have to concern yourself with inflation or taxes. It is a simple question designed to have you solve for timeREQUIREDa. If Colin can earn 4% compounded semi-annually, and makes no further contributions to his savings, how long will it take for him to accumulate $75,000 in savings? (Show your formula and solution using MS Equation.)b. If Colin can earn 10% compounded annually, and makes no further contributions to his savings, how long will it take for him to accumulate $75,000 in savings? (Show your formula and solution using MS Equation.)c. What rate of return would Colin have to earn on his $15,000 savings to see them grow to $75,000 in eight years? (Show your formula and solution using MS Equation.)d. If the best that Colin can hope for is a long-term (8 year) investment rate of return of 4% compounded semi-annually, do you think Colin’s goal is achievable?e. What alternatives (if any) are available to Colin to make his goal achievable at 4% compounded semi-annually?

Colin has just graduated from his local university with a degree in Business Administration. Colin has learned that he must be disciplined in his approach to achieving his life goals. Colin knows that a good financial goal must be SMART (specific, measurable, attainable, realistic and time-delimited). Colin wants to assess whether or not his goal of home-ownership is SMART!Colin would like to own a modest home. At 22 years of age, he would like to have enough money saved for a down payment on the home of his dreams by age 30 (8 years from now).In order to qualify for a CMHC mortgage on a home he must save 25% of the purchase price. The home of his dreams, in today’s dollars would cost $300,000. This means his down-payment savings goal is $75,000 in eight years.At the present time, Colin has $15,000 saved in his TFSA (tax-free savings account).you don’t have to concern yourself with inflation or taxes. It is a simple question designed to have you solve for timeREQUIREDa. If Colin can earn 4% compounded semi-annually, and makes no further contributions to his savings, how long will it take for him to accumulate $75,000 in savings? (Show your formula and solution using MS Equation.)b. If Colin can earn 10% compounded annually, and makes no further contributions to his savings, how long will it take for him to accumulate $75,000 in savings? (Show your formula and solution using MS Equation.)c. What rate of return would Colin have to earn on his $15,000 savings to see them grow to $75,000 in eight years? (Show your formula and solution using MS Equation.)d. If the best that Colin can hope for is a long-term (8 year) investment rate of return of 4% compounded semi-annually, do you think Colin’s goal is achievable?e. What alternatives (if any) are available to Colin to make his goal achievable at 4% compounded semi-annually?

Colin has just graduated from his local university with a degree in Business Administration. Colin has learned that he must be disciplined in his approach to achieving his life goals. Colin knows that a good financial goal must be SMART (specific, measurable, attainable, realistic and time-delimited). Colin wants to assess whether or not his goal of home-ownership is SMART!Colin would like to own a modest home. At 22 years of age, he would like to have enough money saved for a down payment on the home of his dreams by age 30 (8 years from now).In order to qualify for a CMHC mortgage on a home he must save 25% of the purchase price. The home of his dreams, in today’s dollars would cost $300,000. This means his down-payment savings goal is $75,000 in eight years.At the present time, Colin has $15,000 saved in his TFSA (tax-free savings account).you don’t have to concern yourself with inflation or taxes. It is a simple question designed to have you solve for timeREQUIREDa. If Colin can earn 4% compounded semi-annually, and makes no further contributions to his savings, how long will it take for him to accumulate $75,000 in savings? (Show your formula and solution using MS Equation.)b. If Colin can earn 10% compounded annually, and makes no further contributions to his savings, how long will it take for him to accumulate $75,000 in savings? (Show your formula and solution using MS Equation.)c. What rate of return would Colin have to earn on his $15,000 savings to see them grow to $75,000 in eight years? (Show your formula and solution using MS Equation.)d. If the best that Colin can hope for is a long-term (8 year) investment rate of return of 4% compounded semi-annually, do you think Colin’s goal is achievable?e. What alternatives (if any) are available to Colin to make his goal achievable at 4% compounded semi-annually?