Assume a person saves $62 a month by using coupons and doing comparison shopping.

a.What is the amount of annual savings?

b.What would be the future value of this annual amount over 10 years, assuming an interest rate of 4 percent? UseEXHIBIT 1-B

EXhibit 1-B Future Value (Compounded Sum) of $1 Paid In at the End of Each Period for a Given Number of Tlme Periods (an Annuity) 3 5.55 555 5551 '55: 5.155 3.1155 43.515" 5:545 5.21.11 5:55 .5555 5 53m: 5251 5555. 15.115 5525 5557- = 5.551 5.557 5555 5155 5.225- 5 .5555 151155\" 75521 1555' 5:142 5555? .5554 . 5555' 5.2 5.1152 .5155 9 $5.533 $1.555". 16.13.- 5555:! 15527 1.1.1151 11:51:? 315585 523.551 15% 1531151 11 11.551 31515. 135.555: "5555 5555'? 11.51%: 155531 55515 55.55 35.555 19.551 .15 15555- 1555 15515: 55.52\""? 55315. 152552: 252151 21.595 525% 55525: 55:215- 25 1311535.- .155252. 551,551 215.ng 255514 5155195: 55:33:; -mmz 5511-5511 11154351.;5155505