$14,595 is NOT the correct answer. I have tried solving this several different ways and cannot figure it out. Please help.
View previous attempt Check my work 12 Required information [The following information applies to the questions displayed below.) Part 2 of 2 XYZ Corporation has a deferred compensation plan under which it allows certain employees to defer up to 30 percent of their salary for five years. For purposes of this problem, ignore payroll taxes in your computations. (Use Table 1.) (Round your intermediate calculations and final answers to the nearest whole dollar amount.) 1.47 points eBook Print b. Assume Julie, an XYZ employee, has the option of participating in XYZ's deferred compensation plan. Julie's marginal tax rate is 37 percent, and she expects the rate to remain constant over the next five years. Julie is trying to decide how much deferred compensation she will need to receive from XYZ in five years to make her indifferent between receiving the current salary of $12,000 and receiving the deferred compensation payment. If Julie takes the salary, she will invest it in a taxable corporate bond paying interest at 4 percent annually (after taxes). What amount of deferred compensation would accomplish this objective? References Deferred compensation $ 38,647 Future Value of $1 Periods 1.0% 2.0% 3.0% 3.75% 4.0% 4.25% 5.0% 6.0% 7.0% 1 1.02000 1.04040 1.06121 1.08243 1.10408 1.12616 6 7 1.14869 8 9 1.01000 1.02010 1.03030 1.04060 1.05101 1.06152 1,07214 1.08286 1.09369 1.10462 1.11567 1.12683 1.13809 1.14947 1.16097 1.17258 1.18430 1.19615 1.20811 1.22019 1.28243 1.34785 1.03000 1,06090 1.09273 1.12551 1.15927 1.19405 1.22987 1.26677 1.30477 1.34392 1.38423 1.42576 1.46853 1,51259 1.55797 10 11 12 1.03750 1.07641 1.11677 1.15865 1.20210 1.24718 1.29395 1.34247 1.39281 1.44504 1.49923 155545 1.61378 1.67430 1.73709 1.04000 1.08160 1.12486 1.16986 1.21665 1.26532 1.31593 1.36857 1.42331 1.48024 1.53945 1.60103 1.66507 1.73168 1.80094 187298 1.94790 2.02582 2.10685 2.19112 2.66584 3.24340 1.17166 1.19509 1.21899 1.24337 1.25824 1.29361 1.31948 1.34587 1.37279 1.40024 1.42825 1.45681 1.48595 1.64061 1.81136 104250 1.08681 1.13300 1.18115 1.23135 1.28368 1.33824 1.39511 1.45440 1.51621 1.58065 164783 1.71786 1.79087 1.86699 1.94633 202905 2.11529 2 20519 2.29891 283075 3.48564 1.05000 1.10250 1.15763 1.21551 1.27628 1.34010 1.40710 1.47746 1.55133 1.62889 1.71034 1.79586 1.88565 1.97993 2.07893 2.18287 2.29202 2.40662 2.52695 2.65330 3.38635 4.32194 106000 1.12360 1.19102 1.26248 1.33823 1.41852 1.50363 1.59385 1.68948 1.79085 1.89830 201220 2.13293 226090 239656 2.54035 269277 285434 3.02560 3.20714 4.29187 5.74349 1.07000 1.14490 1.22504 1.31080 1.40255 1.50073 1.60578 1.71819 1.83846 1.96715 2.10485 2.25219 2.40985 2.57853 2.75903 2.95216 3.15882 3.37993 3.61653 3.86968 5.42743 7.61226 13 14 15 16 1.60471 1.80223 17 18 19 1.65285 1.70243 1.75351 1.80611 2.09378 2.42726 1.86981 1.93993 201268 2.08815 251017 3.01747 20 25 30 Periods 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 20.0% 25.0% 1 2 3 4 1.09000 1.18810 1.29503 1.41158 1.53862 1.67710 1.82804 1.99256 5 6 7 217189 10 11 12 1.08000 1.16640 1.25971 1.36049 1.46933 1.58687 1.71382 1.85093 1.99900 2.15892 233164 251817 271962 2.93719 3.17217 3.42594 3.70002 3.99602 431570 466096 6.84848 10.06266 1.10000 1.21000 1.33100 1.46410 1.61051 1.77156 1.94872 2.14359 2.35795 2.59374 2.85312 3.13843 3.45227 3.79750 4.17725 4.59497 5.05447 5.55992 6.11591 6.72750 10.83471 17.44940 1.11000 1.23210 136763 1.51807 1.58506 187041 207616 2.30454 2.55804 283942 3.15176 3.49845 3.88328 431044 4.78459 5.31089 5.89509 6.54355 7.26334 8,06231 13.58546 22.89230 1.12000 1.25440 1.40493 1.57352 1.76234 1.97382 2.21068 2.47596 2.77308 3.10585 3.47855 3.89598 4.36349 4.88711 5.47357 6.13039 6.86604 7.68997 8.61276 9.64629 17.00006 29.95992 2.36736 2.58043 2.81266 3.06580 3.34173 3.64248 3.97031 4.32763 4.71712 5.14166 5.60441 8.62308 13.26768 1.13000 1.27690 1.44290 1.63047 1.84244 208195 2.35261 2.65844 3.00404 3.39457 3.83586 433452 4.89801 5.53475 6.25427 7.06733 798608 9,02421 10.19742 11.52309 21.23054 39.11590 1.14000 1.29960 1.48154 1.68896 1.92541 2.19497 2.50227 2.85259 3.25195 3.70722 4.22623 4.81790 5.49241 6.26135 7.13794 8.13725 9.27646 10.57517 12.05569 13.74349 26.46192 50.95016 1.15000 1.32250 1.52088 1.74901 2.01136 231306 266002 3.05902 3.51788 404556 4.65239 5.35025 6.15279 7,07571 8.13706 9.35762 10.76126 12.37545 14.23177 16.36654 32.91895 66.21177 1.20000 1.44000 1.72800 207360 2.48832 2.98598 3.58318 4.29982 5.15978 6.19174 7.43008 8.91610 10.69932 12.83918 15.40702 18.48843 22.18611 26.62333 31.94800 38.33760 95.39622 237.37631 1.25000 1.56250 1.95313 2.44141 3.05176 3.81470 4.76837 5.96046 7.45058 9.31323 11.64153 14.55192 18.18989 22.73737 28.42171 35.52714 44.40892 55.51115 69.38894 86.73617 264.69780 807.79357 13 14 15 16 17 18 19 20 30
