On December 30, you decide to make a $3,900 charitable donation. (Assume you itemize your deductions.) (a) If you are in the 24 percent tax bracket and you expect to itemize your deductions, how much will you save in taxes for the current year? Tax savings for the current year (b) If you deposit that tax savings in a savings account for the next five years at 5 percent, what will be the future value of that account? Use Exhibit 1-A. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future value of tax savings 1.360 3.6441 Exhibit 1-A Future value (compounded sum) of $1 after a given number of time periods Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 1 1.010 1.020 1.030 1.040 1.050 1.060 1.070 1.080 1.090 2 1.020 1.040 1.061 1.082 1.103 1.124 1.145 1.166 1.188 3 3 1.030 1.061 1.093 1.125 1.158 1.191 1.2251 1.260 1.295 4 1.041 1.082 1.126 1.170 1.216 1.262 1.311) 1.412 5. 1.051 1.1041 1.159 ka 1.217 1.276 1.338 1.403 1.469 1.539 6 1.062 1.126 1.194 20 1.265 1.340 1.419 1.501 1.587 1.677 7 1.072 1.149 04 1.230 1.316 1.407 410 1.504 ws 1.606 1.714 8 1.828 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.851) 1200 1.993 9 1.094 1.1951 1.305 1.423 1.551 1.689 1.838 1.999 2.172 10 1.105 1.219 1.344 1000 1.480 4 1.629 1.791 1.967 2.159 2.367 11 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 12 1.127 1.268 1.426 1.601 2016 1.796 2.012 12 2.252 2.518 2.813 13 1.138 1.294 1.665 1.886 2.133 2.410 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.342 15 1.161 1.346 1.558 1.801 2.079 2.397 2.7591 16 1.173 1.373 1.605 1.873 2.183 2.540 2.340 2.952 3.426 3.970 17 1.184 1.400 1.653 1.948 104 1.03 1940 2.292 2.693 3.159 3.700 4.328 18 1.196 1.428 1.702 1 2.407 2.026 2020 2.854 2.039 3.380 3.996 19 4.717 1.208 wwwoy 1.457 1.754 4110 2.107 2.527 3.026 3.617 4.316 5.142 20 1.220 29 1.486 1.806 2.191 2.653 3.207 3.870 4.661 5.604 25 1.282 1.641 2.094 2.666 3.386 4.292 5.427 6.8481 8.623 30 1.348 1.811 2.427 3.243 4.322 5.743 7.612 10.063 13.268 40 1.489 2.208) 3.262 4.801 7.040 10.286 14.974 21.725 31.409 50 1.645 2.692 4.384 7.107 11.467 18.420 29.457 46.902 74.358 10% % 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 2.853 3.138 3.452 3.797 4.177 4.595 5.054 5.560 w 6.116 6.727 10.835 17.449 45.259 117.391 11% 1.110 1.232 1.368 1.518 1.685 1.870 mor 2.076 2.305 2.5581 2.839 3.152 3.498 3.8831 4.310 4.785 5.311 3.09 5.895 6.544 Down 7.263 8.062 13.585 22.892 65.001 184.565 1.469 2.720 3.066 2.579 3.172 Period 1 2 3 4 4 5 6 7 8 8. 9 9 10 11 12 12% 1.120 1.254 1.405 1.574 1.762 1.974 2.2111 2.476 2.773 3.106 Sulo! 3.479 3.896 4.363 11:00 4.887 22 5.474 6.130 osa 6.866 7.690 8.613 9.646 17.000 29.960 93.051 289.002 13% 1.130 1.277 1.443 1.630 1.842 2.082 2.353 2.658 3.004 View 3.395 3.836 4.335 4.898 5.535 6.254 7.067 7.986 9.024 10.197 11.523 21.231 39.116 132.782 450.736 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 View 3.252 3.707 June 4.226 4.818 5.492 12. 6.261 7.138 8.137 9.276 10.575 12.056 13.743 26.462 50.950 188.884 700.233 15% 1.1501 1.323 1.521 1.749 2.011 2.313 2.660 3.059 3.518 Wewe 4.046 Team 4.652 5.350 2 6.153 7.076 8.137 9.358 10.761 12.375 14.232 16.367 32.9191 66.212 267.864 1083.657 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.21 3.278 3.803 4.411 5.117 5.936 6.886 7.988 9.266 10.748 12.468 14.463 16.777 19.461 40.874 85.850 378.721 1670.704| 17% 1.170 1.369 1.602 1.874 2.192 2.565 3.001 3.511 4.108 *.100 4.00 4.807 5.624 6.580 7.699 9.007 10.539 12.330 14.426 16.879 19.748 23.106 50.658 111.065 533.869 2566.215 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 wa 3.759 4.435 5.234 2440 6.176 7.288 8.599 10.147 11.974 14.129 16.670 16.672 19.673 23.214 27.393 62.669 143.371 750.378 3927.357 19% 1.190 1.416 1.685 2.005 2.386 2.840 3.379 4.021 4.027 4.785 5.695 w 6.777 du 8.064 9.596 11.420 13.590 16.172 1024 19.244 22.901 27.252 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 18.488 22.186 26.623 31.948 38.338 95.396 237.376 1469.772 9100.438 25% 1.2501 1.563 1.9531 2.441 3.052 3.815 4.768 5.960 7.451 9.313 11.642 14.552 10400 18.190 *** 22.737 12 28.422 35.527 240g 44.409 55.511 69.3891 86.736 264.698 807.794 7523.164 70064.923 30% 1.300 1.690 2.197 2.856 3.713 4.827 6.275 8.157 10.00 10.604 13.786 10.109 17.922 23.2981 30.288 39.374 51.1861 66.542 86.504 112.455 146.1921 190.050 705.641 2619.996 36118.865 497929.223 13 14 15 16 17 18 19 20 25 30 40 50 32.429 77.388 184.675 1051.668 5988.914
