Compound Sum of $1 (FVIF) n = 20 n = 40 2.00% 1.4859 2.2080 2.10% 1.5154 2.2963 2.20% 1.5453 2.3880 2.30% 1.5758 2.4833 2.40% 1.6069 2.5822 2.50% 1.6386 2.6851 2.60% 1.6709 2.7919 2.70% 1.7038 2.9028 2.80% 1.7372 3.0180 2.90% 1.7714 3.1377 3.00% 1.8061 3.2620 3.10% 1.8415 3.3911 3.20% 1.8776 | 3.5252 3.30% 3.40% 3.50% 3.60% 3.70% 3.80% 3.90%, 4.00% 4.10% 4.20% | 1.9143 || 1.9517 11.9898 2.0286 2.0681 2.1084 | 12.1494 | 2.1911 2.2336 | 2.2770 | 3.6645 3.8091 3.9593 4.1152 4.2771 4.4452 | 4.6198 4.8010 4.9892 5.1845 Present Value of an Annuity (PVIFA) n = 20 n = 40 1.00% | 18.0456 32.8347 1.10% 17.8651 32.2195 1.20% 17.6873 31.6205 1.30% 17.5120 31.0372 1.40% 17.3391 30.4692 1.50% 17.1686 29.9158 1.60% 17.0006 29.3768 1.70% 16.8349 28.8517 1.80% 16.6715 28.3401 1.90% 16.5103 27.8414 2.00% 16.3514 27.3555 2.10% 16.1947 26.8818 | 2.20% 2.30% 2.40% 2.50% 2.60% 2.70% 2.80% 2.90% 3.00% 3.10% 3.20%, 3.30% 3.40% 3.50% 350% 16.0402 15.8878 15.7374 15.5692 15.4429 | 15.2986 | 15.1563 15.0160 | 14.8775 14.7409 14.6061 | 14.4731 | 14.3419 14.2124 14.0647 | 26.4200 25.9698 25.5309 25. 1028 24.6853 24.2780 23.8807 23.4930 23.1148 22.7456 22.3853 22.0336 21.6903 | 21.3551 | 24 0277 | | | 3.70% 3.80% 3.90% 4.00% 4.10% 4.20% | 4.30% 4.40% 4.50% 4.60% 4.70% 4.80% 4.90% 5.00% 13.9586 20.7080 13.8342 20.3958 13.7115 20.0908 13.5903 19.7928 | 13.4708 | 19.5016 13.3528 19.2171 13.2363 18.9390 | 13.1214 18.6673 13.0079 | 18.4016 | 12.8960 | 18.1418 | 12.7854 17.8879 12.6763 17.6395 | 12.5686 17.3967 12.4622 | 17.1591 | Monthly Installment Loan Tablos ($1,000 loan ith interest payments compounded monthly) n = 240 n = 480 6 462.0409 1991.4907 7 520.9267 2624.8134 18 589.0204 3491.0078 667.8869 4681.3203 10 759.3688 6324.0796 11 865.6380 8 600.1272 12 989.2554 11764.7725 Grady Zebrowski, age 25, just graduated from college, accepted his first job with a $49,000 salary, and is already looking forward to retirement in 40 years. He assumes a 2.8 percent inflation rate and plans to live in retirement for 20 years. He does not want to plan on any Social Security benefits. Assume Grady can earn a 6 percent rate of return on his investments prior to retirement and a 5 percent rate of return on his investments post-retirement to answer the following questions using your financial calculator. a. Grady wants to replace 90 percent of his current net income. What is his annual need in today's dollars? b. Using the table . Grady thinks he might have an average tax rate of 13 percent at retirement if he is married. Adjusting for taxes, how much does Grady really need per year, in today's dollars? c. Adjusting for inflation, how much does Grady need per year in future dollars when he begins retirement in 40 years? d. If he needs this amount for 20 years, how much does he need in total for retirement? (Hint: Use the inflation-adjusted rate of return.) e. How much does Grady need to save per month to reach his retirement goal assuming he does not receive any employer match on his retirement savings? Click on the table icon to view the FVIF table . Click on the table icon to view the PVIFA table .. Click on the table icon to view the FVIFA table . a. Grady's annual need in today's dollars is $ . (Round to the nearest dollar.)
