Bob and Carol are planning for the birth of their first child exactly four years from today. They are now ready to start their savings plan for the big event. The current hospital cost for having a healthy baby at the local hospital is $6500 after all insurance payments. Pre-natal care for the immediate 12-month period prior to having the baby amounts to $2000 out-of-pocket costs. Carol’s best friend is planning a baby shower, so only a crib, a baby carrier, and other miscellaneous items will be needed, which all cost $1,200 today. However, these items will be purchased and paid for the day of the child’s birth, and the items are expected to increase in costs by 10% each year over the next four years due to inflation.

Bob and Carol now have $500 in cash that they plan to put in the bank in order to cover the all the new costs. Also, Uncle Ted has promised to contribute $1000 at the end of year two, as a present to Bob and Carol for baby expenses. 

Currently, Bob and Carol can earn 6% compounded annually on this money. In order to be able to pay cash for all these expenses on the day the baby is born, how much will Bob and Carol have to save, assuming the baby is born exactly four years from today.

Draw the timeline that illustrates the timing of all the events of the situation described above. How much will Bob and Carol need to have in the bank on the day the baby is born in order to achieve all their goals? What amount needs to be saved at the end of each year in order for Bob and Carol to reach their financial goals?

INDIVIDUAL ASSIGNMENT
THE INDIVIDUAL ASSIGNMENT CONSISTS OF TWO PARTS (I.E. PART A AND PART B). COMPLETE PART A USING MS WORD AND PART B USING MS EXCEL.
Part A – MS Word (worth 70%)
i) Generate some statistical data to support your discussion, presented in table form. It is inappropriate to use tables not related to your essay.

ii) Include appropriate images. Label, title and describe the images.

iii) Include the automatic table of contents on page 2
iv) The style of the document should include the following:
• A header on every page of the document stating your name (centered)
• A footer on every page of the document stating the page number (centered)
• Border line separating the contents of the page from a header and a footer
• Heading (sub-Heading) and body
• Page setup – left 2.0cm, right 2.0, top 2.0, bottom 1.9
• Font – heading Verdana 14, body Courier New 11
• Line spacing 1.5 10 Marks
Part B – MS Excel (30%)

Create a spreadsheet of the table(s) produced in Part A (section i) of the assignment. Use Ms Excel 2010 charts to analyse the spreadsheet. You are required to use the types of charts (i.e. Column, Line and Pie) which we discussed in class. Show the following in the charts:

a) Column – title, label the axes and legend – 10 marks

b) Line – title, label the axes, values and legend – 10 marks

c) Pie – title, values, percentages and legend – 10 marks
Submission Criteria
You must submit the assignment with the following
_ A document cover page

The document cover page should contain the following:
_ Assignment Title
_ The Course title and number
_ Your first and last name
_ Name of your College
_ Term and Year

Format of files to Submit
Save the assignment cover sheet as student IDcover.docx (e.g. ALMA03Cover.docx)
Save the Ms Word document as student IDWord.docx (e.g. ALMA03Word.docx)
Save the Ms Excel document as student IDExcel.xlsx (e.g. ALMA03Excel.xlsx)
WARNING
• Maximum 1000 words are required for this discussion.
• Work submitted late will be capped at 50%.

INDIVIDUAL ASSIGNMENT
THE INDIVIDUAL ASSIGNMENT CONSISTS OF TWO PARTS (I.E. PART A AND PART B). COMPLETE PART A USING MS WORD AND PART B USING MS EXCEL.
Part A – MS Word (worth 70%)
i) Generate some statistical data to support your discussion, presented in table form. It is inappropriate to use tables not related to your essay.

ii) Include appropriate images. Label, title and describe the images.

iii) Include the automatic table of contents on page 2
iv) The style of the document should include the following:
• A header on every page of the document stating your name (centered)
• A footer on every page of the document stating the page number (centered)
• Border line separating the contents of the page from a header and a footer
• Heading (sub-Heading) and body
• Page setup – left 2.0cm, right 2.0, top 2.0, bottom 1.9
• Font – heading Verdana 14, body Courier New 11
• Line spacing 1.5 10 Marks
Part B – MS Excel (30%)

Create a spreadsheet of the table(s) produced in Part A (section i) of the assignment. Use Ms Excel 2010 charts to analyse the spreadsheet. You are required to use the types of charts (i.e. Column, Line and Pie) which we discussed in class. Show the following in the charts:

a) Column – title, label the axes and legend – 10 marks

b) Line – title, label the axes, values and legend – 10 marks

c) Pie – title, values, percentages and legend – 10 marks
Submission Criteria
You must submit the assignment with the following
_ A document cover page

The document cover page should contain the following:
_ Assignment Title
_ The Course title and number
_ Your first and last name
_ Name of your College
_ Term and Year

Format of files to Submit
Save the assignment cover sheet as student IDcover.docx (e.g. ALMA03Cover.docx)
Save the Ms Word document as student IDWord.docx (e.g. ALMA03Word.docx)
Save the Ms Excel document as student IDExcel.xlsx (e.g. ALMA03Excel.xlsx)
WARNING
• Maximum 1000 words are required for this discussion.
• Work submitted late will be capped at 50%.