Financial planning case 2-2 Victor Hernandez Considers a Career Change Victor is somewhat satisfied with his sales career and has always wondered about a career as a teacher in a public school. He would have to take a year off work to go back to college to obtain his teaching certificate, and that would mean giving up his $47,000 salary for a year. Victor expects that he could earn about the same income as a teacher. Round your answers to the nearest dollar a. What would his annual income be after 11 years as a teacher if he received an average 3 percent raise every year? Round Future Value of a singlet Amount in intermediate calculations to four decimal places. (Hint: Use Appendix A-1.) 3 b. Victor also could eam $6,000 each year teaching during the summers. What is the accumulated future value of earning those annual amounts over 12 years assuming a 6 percent raise every year? Round Future Value of a series of Equal Amounts in intermediate calculations to four decimal places. (Hint: Use Appendix A-3.) Appendix A-1 Future Value of a Single Amount (S1 at the End of n Periods) (Used to compute the Compounded ) 1% 2% SE 4% 79 9% 12% 5% 6% 1.000 10000 8% 100 16% 17% 18 10% 1000 11% 11 DONO Mies 20% 1. o's RI 11001 15 UEF WOOL 1 1.1341 14% 15% 10011010 11 1299 1.40 1 1520 100 2011 11910 ORIE GI DRE BOLEH NOVE 100 1200 100 10121009 1084 im 1058 110 11 106111 LINE 129 16 TS SOS SRL REI SAVE HII RE 17 2.100 1.200 1678 15 1.700 DOC 10 2. 1 17411 1401 LORS 1960 160 1782 1776 1 2 200 2210 10011 12 BCL 24 905 SLET 10 1on UT SH NI S INCE TE 2. W 40 2304 2504 11511 PIECE ASE 40 38.340 ST MIT ELTE CIE 201 CHLOE WS WON IT 1 WICHEL DEL TI WY WELL SEL WS SI 1 2025 DETI 2001 17 UNT ET 6179 50 ne 10 7.00 1. 2012 CUTE TOS E B 2.21 2A 09 1 1721 BONI . 7. IL TEEN 11 150 207 55 16 VE MOSE 4 1905 3370 NEL 16 DOU II 1 IDE DI DOR MORE LORE FOOT WE Wh ME POEZ RE PL 000 OS ICICE EE WOT WOTE HOST VIRE 21 BE SO MODE HOP ST 000 ORTE PO RIT WEE LET HI WIT IS CLES SE SRT S 00065 10 OP HO PE FIL DINE 2 DE RE KA TE ARTI WS SEN LOL TE WAT LIDER RI WENN FACE mit ONE SOU DHE WWW RASTE 1500 WE It LINK BER NO ROW ET PIESE TO COS ST DO TO DAD 59929 DE SS QUEEN RE WO POST THI WS HO W on BUT SISE But TESTNEWS B HEMOPH SKY SEE 1. YA & 700 11 12 wars 1. 13 MORE M 2110 2.92 1. 11 165 DR2 110) 111 10 CE BE 07 11407 SOS 16 9.00 ME 2004 2.97000 205TA 1 51 21 INT LIR MOS 7X 03 16 LORE ME 1671 10 1916 21 RE ORT POP WAT DO G 0951 DIE 17 TO 150 SIS NE ET ON 1601 DE TUT OLE t SEE 2.AT 100 1323 CEITE DE VE 4105 SAS 1100 PO 44 3674 DILEE E TE 1675 LIT SULE ME . 35 2018 Har ECE T 50 3450 11 16 TE DE SOFT WE LE TETTE WITH THEZ CA 200 SHOENEN YE 530 124 UM 114004 20 2200 25 TJO 2016 1064 7 1942 NS483 1930 > 1 57
