r12 K (similar to) Part 1 of 7 points O Points: 0 of 1 Save Assume you want to retire early at age 52. You plan to save using one of the following two strategies: (1) save $4,200 a year in an IRA beginning when you are 27 and ending when you are 52 (25 years) or (2) wait until you are 42 to start saving and then save $10,500 per year for the next 10 years. Assume you will earn the historic stock market average of 12% per year. (Click the icon to view the future value annuity factor table.) value factor table.) (Click the icon to view the present value annuity factor table.) value fortar tahla). (Click the icon to view the future (Click the icon to view the present Video Get more help Clear all Check answer Reference Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7336 7.716 8115 8.536 8.977 9442 9930 Print Done - X Reference 6.308 6.468 6.633 6.802 7.898 8.142 9.214 Period 6 6.152 Period 7 7.214 7.434 7.662 Period 8 8.286 8.583 8.892 Period 9 9.369 9.755 10.159 10.583 11.027 Period 10 10.462 10.950 11.464 12.006 12.578 Period 11 11.567 12.169 12.808 13.486 14.20 14.972 16.645 18.531 20.655 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 9.549 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 8.394 8.923 9.487 10.089 12.142 12.916 9.897 10.637 11.436 12.300 11.491 12.488 13.579 14.776 13.181 14.487 15.937 17.549 10.730 11.414 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 23.045 27.271 32.089 ACTA 17.000 10.000 10.500 02.075 20.000 37.504 25.733 28.755 32.150 30.850 34.931 39.581 36.786 42.219 48.497 12.095 Print Done - I Sa 23.045 25.733 28.755 32.150 S 27.271 39,581 nti 32.089 sto 48.497 e fi 37.581 43.842 Period 11. 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 Period 12 12.683 13.412 14.192 15,026 15.917 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 Period 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 Period 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 30.850 34.931 36.786 42.219 43.672 50.818 59.196 51.660 60.965 72.035 115.380 146.628 186.688 249.214 342.603 471.981 530.312 790.948 1,181.882 ep Reference Print Done SW Reference 27.271 32.089 37.581 43.842 30.850 34.931 39.581 36.786 42.219 48.497 43.672 50.818 59.196 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 51.660 60.965 72.035 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 91.025 115.380 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 146.628 186.688 Period 20 Period 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 Period 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 Period 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 Print Done I X Present Value of Annuity of $1 gie 2) w Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 0.962 Period 2 1.970 1.942 1.913 1.886 Period 3 2.941 2.884 2.829 2.775 Period 4 3.902 3.808 3.717 3.630 Period 5 4.853 4.713 4.580 4152 5% 0.952 6% 8% 10% 12% 14% 16% 18% 0.943 0.926 0.909 0.893 20% m th 0.877 0.862 0.847 0.833 1.859 Period 6. 5 795 5.601 5417 5242 1.833 1.783 1.736 1.690 1.647 2.723 2.673 2.577 2.487 2.402 2.322 3.546 3.465 3.312 3.170 3.037 2.914 4.329 4.212 3.993 3.791 3.605 3.433 5.076 4917 4623 4 355 4 111 3.889 3.274 3.127 3.685 3498 3.326 1.605 1.566 1.528 bvie 2.246 2.174 2.106 2.798 2.690 2.589 2.991 Reference Print Done Reference Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 6.002 8.111 8.760 Period 7 6.728 6.472 6.230 5.786 5.582 5.206 4.868 4.564 4.288 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 Period 10 9.471 8.983 8.530 7.722 7.360 6.710 6.145 5.650 5.216 Period 11 10.368 9.237 9.253 Period 12 11.255 10.575 9.954 9.385 Period 13 12.134 11.348 10.635 9.986 4.039 3.812 3.605 4.078 3.837 4.303 4.031 4.833 4.494 4.192 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 12.004 10.100144.000 10 500. 8.863 8.384 7.536 6.814 6.194 9.394 8.853 7.904 7.103 6.424 0.000 0.005 5.660 5.197 4.793 4.439 5.842 5.342 4.910 4.533 2007 0.000 8.000 ECO .000. Drint Reference Period 12 11.255 10.575 9.954 9.385 Period 13 12.134 11.348 10.635 9.986 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.439 4.533 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.002 5.468 5.008 4.611 6.142 5.575 5.092 4.675 Period 25 22.023 Period 30 25.808 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 6.623 5.929 5.353 4.870 6.873 6.097 5.467 4.948 7.003 6.177 5.517 4.979 Period 40 32.835 7.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4.997 Reference th Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% th Period 1 1.010 1.020 1.030 1.040 1.050 1.060 1.080 1.100. 1.120 1.140 1.160 1.180 1.200 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.260 Period 4 1.041 1.082 1.126 1.170 1.216 262 1.360 Period 5 1.051 1.104 1.159 1.217 1.276 1.331 1.405 1.482 1.561 1.464 1.574 1.689 1.811 1.338 1.469 1.611 1.762 1.925 2.100 1.643 1.728 1.939 2.074 2.288 2.488 Period 6 1.062 1.126 1194 1.265 1.340 1.419 1.587 1.772 1974 2195 2436 2.700 2 QR6 Print Done ans Reference Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 Period 7 1:072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 Period 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 Period 11 1.116 1.243 1.384 1.539 1.710 Period 12 1.127 1.268 1.426 1.601 Period 13 1.138 1.294 1.469 1.665 Darind 14 1440 1210 1512 1.722 1.886 1.000. 1.898 2.332 2.853 3.479 4.226 5.117 1.796 2.012 2.518 3.138 3.896 4.818 5.936 2.133 2.720 3.452 4.363 5.492 6.886 6.176. 7.430 7.288 8.916 8.599 10.699 2001 2027 2.707 1.007 FORL 7.000 10.117 12.020 Print Done Reference Period 12 1.127 Period 13 1.138 1.268 1.426 1.601 1.796 1.294 1.469 1.665 1.886 Period 14 1.149 Period 15 1.161 1.319 1.513 1.732 1.980 1.346 1.558 1.801 Period 20 1.220 1.486 1.806 2.191 Period 25 1.282 Period 30 1.348 Period 40 1.489 2.653 1.641 2.094 2.666 3.386 1.811 2.427 3.243 4.322 2.208 3.262 4.801, 7.040 4.661 2.012 2.518 3.138 3.896 4.818 5,936 7.288 2.133 2.720 3.452 4.363 5.492 6.886 8.599 2.261 2.937 3,797 4.887 6.261 7.988 10.147 12.839 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 6.727 9.646 13.743 19.461 27.393 38.338 6.848 10.835 17.000 26.462 40.874 62.669 95.396 8.916 10.699 3.207 4.292 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 Period 6. 0942 ORAR 0.837 0 790 0.746 0.705 0630 0.564 0.507 0.456 0.410 10.370 0.636 0.592 0.552 0.516 0.482 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0335 Print Done I X Reference Period 6 0.942 0.888 0.837 0.790 0.746 Period 7 0.933 0.871 0.813 0.760 0.711 Period 8 0.923 0.853 0.789 0.731 0.677 Period 9. 0.914 0.837 0.766 Period 10 0.905 0.820 0.744 0.676 Period 11 0.896 0.804 0.722 0.650 Period 12 0.887 0.788 0.701 Period 13 0.879 0.773 0.681 0.625 0.601 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0191 0.162 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.557 0.497 0.397 0.319 0.530 0.469 0.368 0.290 0.257 0.208 0.168 0.137 0.112 0.229 0.182 0.145 0.116 0.093 Print Done Reference Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.257 0.208 0.168 0.137 0.112 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.160 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.263 0.205 0.125 0.099 0.078 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 20 0.820 0.673 0.554 0.456 0.377 Period 25 0.780 0.610 0.478 0.375 Period 30 0.742 0.552 Period 40 0.672 0.453 0.312 0.215 0.149 0.104 0.073 0.051 0237 0.026 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 Print Done Requirements 1. How much out-of-pocket cash will you invest under the two options? 2. How much savings will you have accumulated at age 52 under the two options? 3. Explain the results. 4. If you let the savings continue to grow for ten more years (with no further out-of-pocket investments)Lunder each scenario, what will the investment be worth when you are age 62? Print Done ter 12 K Question 3, E12-24A (similar to) Part 1 of 7 HW Score: 14.06%, 0.98 of 7 points O Points: 0 of 1 (Click the icon to view the future value annuity factor table.) Sa (Click the icon to view the f Requirement 1. How much out-of-pocket cash will you invest under the two options? Calculate how much out-of-pocket cash you will invest under the two options. Option 1: Video Get more help Clear all Check answ