Chapter 3 Homework i Saved Wendy Brooks prepares her own income tax return each year. A tax preparer would charge her $155 for this service. Over a period of 10 years, how much does Wendy gain from preparing her own tox return? Assume she can earn 2 percent on her savings. Use Exhibit 1-B. (Round FVA factor to 3 decimal places and final answer to 2 decimal places.) Future value Skloped Exhibit 1-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 1% 25 5% 6% 7% 9% 10% 11% 201 202 205 2.00 203 3001 204 3122 207 3215 208 3246 21 3.31 211 3.342 306 3278 308 406 3.153 431 5.625 444 206 3.184 4375 5.637 6.975 4122 5.204 4 506 4154 5.300 471 5 6 .101 6.416 5.751 4.573 5.985 7523 6.105 6367 73 6228 6.15 6300 6633 6802 7153 7 116 7013 7 214 7434 7 000 8.142 8.394 3654 0.487 783 8 583 8892 0214 0540 197 10 26 8923 10 637 12 486 11 02 11.436 8206 0360 10.462 11.850 10 150 10 583 11.401 11978 13021 13 579 14 164 13 315 14 457 15.193 15037 16722 9755 10.95 12 160 13.412 11.454 12.606 12005 13.486 13.181 14072 11 567 18 531 15 784 17 368 16645 18 977 11 027 12.678 14207 15 917 17713 19.500 21.679 19.561 22.713 12683 14.192 15 026 16 87 20.141 21.384 13 009 1468 15518 16 627 18.02 20.141 21.495 22953 24523 26 212 14 947 15 974 17 056 18 292 21 015 22 55 26010 27 975 15 16097 17.293 18 599 23.276 25 129 29 361 31 772 16 17 258 18 630 20157 23 657 25 673 27606 33 003 3805 36 974 17 18 40 545 20.024 21 625 23 600 25.645 27 671 18:43 19.615 20 811 22 010 2 1762 2 3 414 25.117 45.699 30.04 33.900 37 379 28 132 30 500 28 213 30 906 33.76 TO 30095 34.400 39 10 44.601 50.306 56900 64203 20 012 2 1412 22 341 24 297 3203 40 568 60.402 24 215 27.162 30 324 33.75 3745 41.446 4572 73.106 113.263 200067 573 77 41301 46018 51.150 57 278 2687 20 778 33 066 40 995 51.16 28 245 6450 41 605 63240 84 701 114 413 47.727 66430 34 135 04461 54.366 70 000 154.762 136300 47575 75.401 100 021 98.347 164 494 442.503 5600 90026 152667 48 886 1208 581.826 190.636 406620 337582 615064 5064463 54 570 112 797 200 348 200 335 1163 000 1 668 771 On December 30, you make a $2,500 charitable donation a. If you are in the 35 percent tax bracket, how much will you save in taxes for the current year? (Assume your other itemized deductions exceed the standard deduction amount.) Tax savings eBook b. If you deposit that tax savings in a savings account for the next seven years at 9 percent, what will be the future value of that account? Use Exhibit 1A. (Round FV factor to 3 decimal places and final answer to 2 decimal places.) PIM Future value References Exhibit 1 -A Future Value (Compounded Sum) of $1 after a Given Number of Time Periods Period 2% 3% 4% 5% 6% 7% 1% 101 1.02 8% 108 9% 109 10% 11 1 102 103 104 105 106 107 1.04 1082 1.103 1 145 1 166 1 188 121 1331 1061 1093 1.126 103 11% 111 1 232 1.368 1.518 1685 1125 1.158 1 26 1295 1124 1.191 1.262 1338 1.061 1062 1. 104 1225 1311 1.17 1216 1.412 1.041 1051 1464 1.159 1217 1 276 1 403 1 469 1500 1611 1062 1 194 1419 1 587 1677 1 772 187 1 501 1606 7 1072 1714 1 718 1851 1083 1094 1.105 1116 1.149 1.172 1.195 1219 1 243 1268 1 294 1 319 1267 1 305 1 344 1.384 1 265 1316 1300 1423 1 48 1539 1 504 1594 1689 1791 1898 2012 2133 2 261 2397 1949 2144 2358 2594 2858 3138 11 1828 1993 2.172 2367 2.58 2813 3066 3342 1 127 1138 1601 1 665 1732 1 469 1838 1.967 2 105 2 252 2.41 2579 2750 2952 3.159 2076 2 305 2558 2839 3.152 3.498 3883 431 4785 5.311 5.895 1149 1 999 2159 2.332 2518 272 2937 3.172 3.426 37 3996 4 316 3797 1161 1306 1801 1 407 1.477 1551 1629 171 1.796 1886 198 2079 2.183 2292 2407 2527 2653 3.386 4.322 7.04 11467 3642 4177 1.373 254 3.97 1.173 1.184 17 14 2695 2854 1196 338 4.717 1513 1558 1605 1653 1.702 1754 1 806 2094 2427 3 262 6544 1428 1 457 1 208 7253 8 1406 1873 1948 2026 2 107 2 191 2666 3.243 4.801 7.107 122 1282 802 1641 4.595 5054 556 6 116 6727 10.835 17.449 45.259 117.391 3617 3.87 5.427 7612 14.974 29 457 5.142 5604 8.623 13268 31.409 4 358 3 207 4292 5.743 10.286 18.42 8 1.348 1 811 6.848 10.063 21.725 46.902 13.585 22 892 65.001 184.565 8 1489 1645 2208 2692 8 7
