eBook Financial planning case 1-2 Victor and Maria Hernandez Look at Future Income Throughout this book, we will present a continuing narrative about Victor and Maria Hernandez. Following is a brief description of the lives of this couple. Victor and Maria, both in their late 30s, have two children: Jacob, age 13, and Nicholas, age 15. Victor has had a long sales career Jacob, age 13, and Nicholas, age 15. Victor has had a long sales career with a retail appliance store in Fargo, North Dakota eaming $56,000 annually. Maria works as a medical records assistant earning $30,000 a, Victor and Maria regularly buy and sell a number of items on eBay, Craig's List, and through the sell a number of items on eBay, Craig's List, and through the free community newspaper, from which they earn about $5,000 each year. What is the accumulated future value of those annual amounts over 24 years if the annual earnings were invested regularly and provided a 6 percent return each year? (Hint: Use Appendix A.3.) Round your answer to nearest dollar. Round Future value of Series of Equal Amounts in intermediate calculations to four decimal places b. What would Victor and Maria's annual income be after 24 years if they both received an average 6 percent raise over their current $86,000 salary ($56,000+ $30,000) every year? (Hint: Use Appendix A.1.) Round your answer to nearest dollar. Round Future value of a Single Amount in intermediate calculations to four decimal places. Appendix A-1 Future Value of a Single Amount ($1 at the End of n Periods) (Used to Compute the Compounded Future Value of a Known Lump Sum) 9% 14% 11100 18104 20162 1% 2% 3% 4% 5% 6% 7% 10% 11% 12% 13% 15% 16% 17% 18% 1 O 1 ORE 100 100 100 100 1000 1.1200 1300 1.MOO 7 10 10 10 10 10 12 149 123.21 191 1325 W 3 636310612 109 110 115 1190 0 1999 12950 1409 1015 1.5209 4 1040 10824 11255 1.1699 12155 12625 1308 1.3605 14116 1 15735 16XS 1590 1.7890 13719 19 5 10510 11001 193 1.2167 12763 13382140161493 1596 18424 1.9254 2.0114 2.00 6 10615 11252 IN 1 10 LAWS 15001 15669 16771 1.7716 1.9738 20820 2.1990 2.3131 2.5652 7 172 17 13159 1.4071 150 160 13 18780 1. MRT 2.SM 2023 26600 2000 30012 3790 8 109 1 10 1 1182 189 19906 2470 20 X 3000 3.276 35115 3.75894 0214 4 9 109 11051 103 1553 16 TS 199602.1719 25 2.7731 339 5179 3 1084 405 110 120 12 1 129 230 25 40456 691 1 11197 104 103 1049 23116 2504 42262 4.6524 51173 56240 6710 1 1.128 129 148 110 111 2012 22 75182 18127 41345 48 53903 8050 9161 11 1128 12936 1 1 1120408 > 196 065 4. 594 6.1528 6 1994 96 119 1411495 1110 15036 17317 1979 269 2.5529377 33411 8871 S.SMA 661) TOST 7.9875 90075 101472 11414 12.99 15 11610 150 100 2001 2.7903.1722 36425 5.47% 6.2431 811 7655 10.5 1197 155 15.4070 16 1.1126 13 10 17 218 21.0492 3.42593973 6.130 7 73 1972 9.3576 10.700 ) 14.1290 161715 1 113 114 1 20612158837000 3 6.66 6 5 6 124677 M. 1662 19.241 32 1 760 0 0 0 0 6 196733 220 60 1921 1 922 1665 3157510 6115 6 127 128 16 2 321422 20 222 1 9 1806 2.7911 2.65333 71 67 45610 55044 275 9643 1 531 535 108 2105622 323 32375 2112324 1515 1 278 278503396 0 50333 81068 2000 RO 1038 3011 15.667688215 325 336 32 010 460051 22 1247 150 1991 2.39929750S4430454365 66 2,936 12.2008 17.10 21547 361844 16 8 45 23 55 2061 2 12572 1579 1916 4547 307153197 455871572519 8154 110063 1252 6 X6 20.3616 4115 100 370062 45.00 687 66.24 127 ORE 2.963 3.225 40 502 5.3417 9111 1 1 2232 15 TM 232122 28.6352 35336 51 1090 6500 25 264 1656 20 26658338544 547758985 61 100 13585517000113665193000 ENG 13 20130 140 50 1616 116 5 1301 48010700 195 68 11 184 6 1176 5 .555 22.333 DS 45.000 2010 26 18 267. 5635 5. 0 00 1083657670100 5 157 1 0 5517 NET 23 7 051 ST 11004 Anbendix A-3 Future Value of a Series of Equal Amounts (an Annuity of S1 Paid at the End of Each Period) (Used to compute the Compounded Future Value of a Stream of Income Payments) 11% 12% 10000 2.1200 2.1300 33421 KORE 66101 INSEL 100 SOLE n 1% 2% 3% 4% 5% 6% 7% 8% 10% 1 100 100 100 100 10000 10000 10000 LODGE 2 20100 2000 20 e 20000 2000 2000 2010 3 3001 30604 309 3121631535 3 6 371 454 404 4.1216 4.1836 42 4 301 146 44799 51000 52040 53001 5416) 3556 561 5.7907 61520630516 66268019 6.9753 7 1533 72135 74343 05 78 8100 86540 89028 SO 951 106366 11.00 1139 13 100248 119 120 125 13 1 3 15 15 11 115 116 1 14068 9716 15 16 16.5155 E 125825 3.4121 1 500 15.0258 15907116019 17888518.977221407 218 1138083 1460) 15617 1668 17.7136 01 2 3 4 1 1404 155739 170 18.2919 015 014960160 27979 15 6099 17.934 0336 157 10 27,1521 17725 172579 1 3 6575675 21 310 16 35 5404 702 926 0 0 5 32502 5 203109236 276 1 373790210 5 20207904 297781 336606 0 455051601 57 21 322 ) 36219692 35.71 65 56.422564 005 2244716 27 3052 052 55.50 1 60 751 6 1714805 60 4 x 4 O S 43 49211 51405 6.2278 6.3528 6.8771 85355 RS 1975 1000 10.4047 10.7305 1106 12 1415 12:52 4 1 3 13.238 13.268 10 15170 14 1 5 154157 16089 16 11 SIES HO 16. 2016 84997 19 2 0 2115 235213 191 65 212 645 249 25737 22.7132 1331 25.650227220729.0017 308502 32.829 37.182 2 62116 28091 87 20887 34 35 367862 5245 4.466 32.1004 H ) 1 40 43.6720 54349 9059 34.054 229) 04175 04 51.6595 72.0851 1 753 6717509804 557175 60.9050 66.5188 50 381 5117 635 78.991 00 60217 105910 0 3 1751 105 10 15 20 12257 4 2 82118 602 1906 120 W 1547400 2008 20124 06 912 13 19 0 1 7226516 9 1476 1140 1135 TN00 4 22500 81.213 935026 1052010120436 1176316 157 1199 10.1721 206.341 484 7100 149 141203048 189 190 112118013 2444 260 3618 326 238 211 212 21341 23 2 4 25 004 ORTOS 5509 EL 191 01 34504 4789 0600 06 533 1 14 6 59 24 ST 4 3) Poe T. 160 161 1 0155101 Gast 05 .0351 6 01 2 6 027 9233 009 4120756.7121 1181882 52 0 343.856 1509501 518 5