4. Looking forward - Future value Compounding Interest You know that paying yourself (by depositing money in a savings account) is a prudent to your retirement plan. You determined that, based on your other obligations, you can save 6,375.00 per year via an annual, single year-end deposit. Let's say that you are age 35 now, so your money will grow for the next 30 years until you reach age 65. You will open a savings account at the Wells Fargo branch near your home. Its savings accounts are paying 6% Interest 10% Year 10 15.937 21.384 12 15 31.7 2% 10.950 13.412 17.293 24.297 32.030 40.567 49.994 60.401 3% 11.460 14.190 18.600 26.870 36.460 47.570 60.460 75.400 5% 12.578 15.917 21.578 33.066 47.726 66.438 90.318 120.797 13.180 16.870 23.270 36.780 54.860 79.060 111.430 154.760 14.487 18.977 27.152 45.762 73.105 113.282 172.314 259.052 15.190 20.140 29.360 51.160 84.700 136.300 215.700 337.870 25 57.274 98.346 164.491 271.018 442.580 To calculate the value of this nest egg, enter the data provided by entering the correct value in the applicable entry field. Annual savings Years over which it will grow Interest rate Interest factor What will be the value of this money in 30 years? (Note: Round to two decimal places.) REEK You began your savings program at age 35. If you had started five years earlier, such that your funds would grow for years, what would your nest egg be worth, assuming the same interest rate and annual savings amount? (Note: Round to two decimal places.)_ TER A new bank in town offers 8% interest. How much would your yearly deposits be worth if you open a savings account there, assuming that your funds are invested for 30 years and all other factors staying the same? SASA To calculate the revised value of your nest egg, reenter the provided data, remembering to change the FVA factor based on the change in interest ASS ing the same? to change the FVA factor ba rate. SER Annual savings Years over which it will grow Interest rate Interest factor % SERER What will be the value of this money in 30 years? (Note: Round to two decimal places.) What will be the value of this money in 30 years? (Note: Round to two decimal places.) years, what would You began your savings program at age 35. If you had started five years earlier, such that your funds would grow for your nest egg be worth, assuming the same interest rate and annual savings amount? (Note: Round to two decimal places.) A new bank in town offers 8% Interest. How much would your yearly deposits be worth if you open a savings account there, assuming that your funds are invested for 30 years and all other factors staying the same? To calculate the revised value of your nest egg, reenter the provided data, remembering to change the PVA factor based on the change in interest rate. Annual savings Years over which it will grow Interest rate Interest factor What will be the value of this money in 30 years? (Note: Round to two decimal places.) Again, if you had started your savings program five years earlier, what would your nest egg be worth, assuming that your funds were invested at this higher interest rate, the annual savings amount remains the same, and the funds are invested for years? (Note: Round to two decimal places.)