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being able to cover daughter’s college expense ⁃awareness of possible medical expenses due to his current health and family historyRelationships/Constraints-None
Question 4 – Draw and influence chart for the problem:Question 5 – In what ways could we simplify the problem?⁃Assume no tragic events i.e. house fire, death, sudden illness⁃Assume Bob has job security⁃Do not account for inflation⁃Bob remains debt free by paying his premiums⁃Assuring Margaret would acquire her parents estateQuestion 6 – What modules will we need to build?⁃Total savings accumulated through current saving plan vs total savings accumulated through an increase in contribution amount
Question 7 – What are the key relationships in the problem?⁃Interest earned is a function of contribution amount and time⁃Savings accumulated is a function of time⁃Tax payable is a function of contribution amountQuestion 8 – What are the parameters of the problem?⁃Retirement Age⁃Life Expectancy⁃Tax Rate⁃Interest Rate