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Karen and Mike currently insure their cars with separate companies, paying $600 and $800 a year. If they insured both cars with the same company, they would save 15 percent on the annual premiums. What would be the future value of the annual savings over 10 years based on an annual interest rate of 3 percent? Use Exhibit 1-B. (Round FVA factor to 3 decimal places and final answer to 2 decimal places.) Future value Period 5% 6% 1% 1.000 2% 1.000 9% 1.000 1 1.000 2 2.020 4% 1.000 2.040 3.122 4.246 2.090 2.010 3.030 4.060 5.101 1.000 2.050 3.153 4.310 3. 7% 1.000 2.070 3.215 4.440 5.751 7.153 4 5 5.416 5.526 6.802 6 6.152 7 8.654 8 9 10 11 12 13 3.060 4.122 5.204 6. 308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 18.639 20.012 21.412 22.841 24.297 32.030 40.588 60.402 84.579 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 20.157 21.762 23.414 25.117 26.870 36.459 47.575 75.401 112.800 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 17.258 18.430 19.615 20.811 22.019 28.243 34.785 48.886 64.463 2.060 3.184 4.375 5.637 6.975 8.394 9.897 11.491 13.181 14.972 16.870 18.882 21.015 23.276 25.673 28.213 30.906 33.760 36.786 54.865 79.058 154.760 290.340 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 21.825 23.698 25.645 EL + 27.671 29.778 41.646 56.085 95.026 152.670 8.142 9.549 11.027 12.578 14.207 15.917 17.713 19.599 21.579 23.657 25.840 28.132 30.539 33.066 47.727 66.439 120.800 209.350 8% 1.000 2.080 3.246 4.506 5.867 7.336 8.923 10.637 12.488 14.487 16.645 18.977 21.495 24.215 27.152 30.324 33.750 37.450 41.446 45.762 73.106 113.280 259.060 573.770 14 3.278 4.573 5.985 7.523 9.200 11.028 13.021 15.193 17.560 20.141 22.953 26.019 29.361 33.003 36.974 41.301 46.018 51.160 84.701 136.310 337.890 815.080 15 10% 1.000 2.100 3.319 4.641 6.105 7.716 9.487 11.436 13.579 15.937 18.531 21.384 24.523 27.975 31.772 35.950 40.545 45.599 51.159 57.275 98.347 164.490 442.590 1,163.900 10.260 11.978 13.816 15.784 17.888 20.141 22.550 25.129 27.888 30.840 33.999 37.379 40.995 63.249 94.461 199.640 406.530 11% 1.000 2.110 3.342 4.710 6.228 7.913 9.783 11.859 14.164 16.722 19.561 22.713 26.212 30.095 34.405 39.190 44.501 50.396 56.939 64.203 114.410 199.020 581.830 1,668.800 16 17 18 19 20 25 30 40 50 20% 18% Period 30% 1 1 2. 3 4 5 6 7 8 9 10 11 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 37.280 42.753 48.884 55.750 63.440 72.052 133.330 241.330 767.990 2,400.000 13% 1.000 2.130 3.407 4.850 6.480 8.323 10.405 12.757 15.416 18.420 21.814 25.650 29.985 34.883 40.417 46.672 53.739 61.725 70.749 80.947 155.620 293.200 1,013.700 3,459.500 14% 1.000 2.140 3.440 4.921 6.610 8.536 10.730 13.233 16.085 19.337 23.045 27.271 32.089 37.581 43.842 50.980 59.118 68.394 78.969 91.025 181.870 356.790 1,342.000 4,994.500 15% 1.000 2.150 3.473 4.993 6.742 8.754 11.067 13.727 16.786 20.304 24.849 29.002 34.352 40.505 47.580 55.717 65.075 75.836 88.212 102.440 212.790 434.750 1,779.100 7,217.700 16% 1.000 2.160 3.506 5.066 6.877 8.977 11.414 14.240 17.519 21.321 25.733 30.850 36.786 43.672 51.660 60.925 71.673 84.141 98.603 115.380 249.210 530.310 2,360.800 10,436.000 17% 1.000 -2.170 3.539 5. 141 7.014 9.207 11.772 14.773 18.285 22.393 27.200 32.824 39.404 47.103 56.110 66.649 78.979 93.406 110.290 ET 130.030 292.110 647.440 3, 134.500 15,090.000 19% 1.000 2.190 31606 5.291 7.297 9.683 12.523 15.902 19.923 24.701 30.404 37.180 45.244 54.841 66.261 79.850 96.022 115.270 138.170 165.420 402.040 966.700 5,529.800 31, 515.000 1.000 2.180 3.572 5.215 7. 154 9.442 12.142 15.327 5 19.086 23.521 28.755 34.931 42.219 50.818 60.965 72.939 87.068 103.740 123.410 146.630 342.600 790.950 4,163.210 21,813.000 12 13 14 25% 1.000 2.250 3.813 5.766 8.207 11.259 15.073 19.842 25.802 33.253 42.566 54.208 68.760 86.949 109.690 138.110 173.640 218.050 273.560 342.950 1,054.800 3,227.200 30,089.000 80, 256.000 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 87.442 105.930 128.120 154.740 186.690 471.980 1,181.900 7,343.900 45,497.000 2. 3. 6.1 9.6 12.7 17.5 23.8. 32.0 42.6 56.4 74.31 97.62 127.91 167.29 218.47 285.01 371.52 483.97 630.17 2, 348.800 8,730.00 120,393.00 165,976.000 15 16 17 18 19 20 25 30 40 50 75F Sunny A E O 02 O Type here to search Shaan and Anita currently insure their cars with separate companies, paying $690 and $595 a year. If they insure both cars with the same company, they would save 10 percent on their annual premiums. What would be the future value of the annual savings over 9 years based on an annual interest rate of 5 percent? Use Exhibit 1-B. (Do not round intermediate calculations. Round FVA factor to 3 decimal places and final answer to 2 decimal places.) Future value Exhibit l-B Future Value (Compounded Sum) of $1 Paid In at the End of Each Period for a Given Number of Time Periods (an Annuity) Period 3% 9% 11% 1 1% 1.000 2.010 5% 1.000 2.050 3.153 2 3 7% 1.000 2.070 3.215 4.440 5.751 7.153 8.654 10.260 1.000 2.090 3.278 4.573 5.985 10% 1.000 2.100 3.310 4.641 6.105 7.716 9.487 4 5 6 7 8 9 10 11 12 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 18.639 20.012 21.412 22.841 24.297 32.030 40.588 60.402 84.579 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 17.258 18.430 19.615 20.811 22.019 28.243 34.785 48.886 64.463 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 20.157 21.762 23.414 25.117 26.870 36.459 47.575 75.401 112.800 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 21.825 23.698 25.645 27.671 29.778 41.646 56.085 95.026 152.670 6% 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 11.491 13.181 14.972 16.879 18.882 21.015 23.276 25.673 28.213 30.906 33.760 36.786 54.865 79.058 154.760 290.340 4.310 5.526 6.802 8.142 19.549 11.027 12.578 14.207 15.917 17.713 19.599 21.579 23.657 25.840 28.132 30.539 33.066 47.727 66.439 120.800 209.350 13 8% 1.000 2.080 3.246 4.506 5.867 7.336 R.923 10.637 12.488 14.487 16.645 18.977 21.495 24.215 27.152 30.324 33.750 37.450 41.446 45.762 73.106 113.280 259.060 573.770 14 15 11.978 13.816 15.784 17.888 20.141 22.550 25.129 27.888 30.840 33.999 37.379 40.995 63.249 94.461 199.640 406.530 1.000 2.110 3.342 4.710 6.228 7.913 9.783 11.859 14.164 16.722 19.561 22.713 26.212 30.095 34.405 39.190 44.501 50.396 56.939 64.203 114.410 199.020 581.830 1,668.800 7.523 9.200 11.028 13.021 15.193 17.560 20.141 22.953 26.019 29.361 33.003 36.974 41.301 46.018 51.160 84.701 136.310 337.890 815.080 16 17 11.436 13.579 15.937 18.531 21.384 24.523 27.975 31.772 35.950 40.545 45.599 51.159 57.275 98.347 164.490 442.590 1,163.900 18 19 20 25 30 40 50 Period 1 2. 3 4 5 6 8 9 10 11 12 13 14 12% 1.000 2.120 3.374 4.779 6.353 8. 115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 37.280 42.753 48.884 55.750 63.440 72.052 133.330 241.330 767.090 2,400.000 13% 1.000 2.130 3.407 4.850 6.480 8.323 10.405 12.757 15.416 18.420 21.814 25.650 29.985 34.883 40.417 46.672 53.739 61.725 70.749 80.947 155.620 293.200 1,013.700 3,459.500 14% 1.000 2.140 3.440 4.921 6.610 8.536 10.730 13.283 16.085 19.337 23.045 27.271 32.089 37.581 43.842 50.980 59.118 68.394 78.969 91. 025 181.870 356.790 1,342.000 4,994.500 15% 1.000 6 2.150 3.473 4.993 6.742 8.754 11.067 13.727 16.786 20.304 24.349 29.002 34.352 40.505 47.580 55.717 65.075 75.836 88.212 102.440 212.790 434.750 1,779.100 7,217.700 16% 1.000 2.160 3.506 5.066 6.877 8.977 11.414 14.240 17.519 21.321 25.733 30.850 36.786 43.672 51.660 60.925 71.673 84. 141 98.603 115.380 249.210 530.310 2,360.800 10,436.000 17% 1.000 2.170 3:539 5.141 7.014 9.207 11.772 14.773 18.285 do 22.393 27.200 32.824 39.404 47.103 56.110 66.649 78.979 93.406 110.290 130.030 292.110 647.440 3,134.500 15,090.000 18% 1.000 2.180 3.572 5.215 7.154 9.442 12.142 15.327 19.086 23.521 28.755 34.931 42.219 50.818 60.965 72.939 87.068 103.740 123.410 146.630 342.600 790.950 4,163.210 21,813.000 19% 1.000 2.190 3.606 5.291 7.297 9.683 12.523 15.902 19.923 24.701 30.404 37.180 45.244 54.841 66.261 79.850 96.022 115.270 138.170 165.420 402.040 966.700 5,529.800 31,515.000 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 87.442 105.930 128. 120 154.740 186.690 471.980 1,181.900 7,343.900 45,497.000 25% 1.000 2.250 3.813 5.766 8.207 11.259 15.073 19.842 25.802 33.253 42.566 54.208 68.760 86.949 109.690 138.110 173.640 218.050 273.560 342.950 1,054.800 3,227.200 30,089.000 80, 256.000 30% 1.0 2.3 3.9 6.1 9.0 12.7 17.58 23.85 32.01 42.61 56.40 74.32 97.62 127.91 167.296 218.47 285.010 371.520 483.970 630.170 2,348.800 8,730.000 120,393.000 165,976.000 15 16 17 18 19 20 25 30 40 50