Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

References: Thanks!!! Amanda wants to take the next six years off work to travel around the world. She estimates her annual cash needs at $30,000

image text in transcribed

image text in transcribed

References:

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Thanks!!!

Amanda wants to take the next six years off work to travel around the world. She estimates her annual cash needs at $30,000 (if she needs more. she will work odd jobs) Amanda believes she can invest her savings at 8% until she depletes her funds (Click the icon to view Present Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the loon to view Future Value of 51 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table) Read the requirements Requirement 1. How much money does Amanda need now to fund her travels? (Round your answer to the nearest whole dollar) With the 8% interest rate, Amanda needs $ Requirement 2. After speaking with a number of banks, Amanda learns she will only be able to invest her funds at 4% How much does she need now to fund her travels? (Round your answer to the nearest whole dollar) With a 4% interest rate. Amanda would need S If Amanda's savings are earning a lower interest rate (4%) she will need to save to be able to withdraw 530,000 per year. less be more - X * Requirements Je do How 1. How much money does Amanda need now to fund her travels? 2. After speaking with a number of banks, Amanda learns she will only be able to invest her funds at 4% How much does she need now to fund her travels? ed pery Print Done Present Value of $1 Periods 36 1 2 3 4 5 4% 5% 0.962 0.952 0.925 0907 0.889 0.864 0.855 0823 0822 0.784 0.790 0.746 0.760 0.711 0.731 0.677 0.703 0.645 0.676 0614 6% 0.943 0.890 0.840 0.792 0.747 9% 0917 0.842 0772 0.708 0.650 10% 0.909 0.826 0751 0.683 0.621 12% 0.893 0.797 0712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 15% 0.870 0.756 0.658 0.572 0.497 16% 0.862 0.743 0.641 0552 0.476 20% 0.833 0.694 0.579 0482 0.402 18% 0.847 0.718 0.609 0516 0.437 0.370 0314 0.266 0.225 0.191 ch 2% 3% 0.990 0.980 0971 0.980 0.961 0.943 0.971 0.942 0.915 0961 0.924 0.888 0.951 0.906 0.863 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0905 0.820 0.744 0.896 0894 0.722 0.887 0.798 0.701 0.879 0.773 0.581 0870 0.758 0.661 0.861 0.743 0.642 0.853 0.728 0623 0.844 0.714 0.605 7 B 7% 8% 0.935 0.926 0873 0857 0816 D794 0.763 0.735 0.713 0.681 0.666 0.630 0.623 0.583 0 582 0.540 0544 0 500 0.509 0.463 0475 0429 04440.397 0.415 0.368 0.388 0.340 0362 0.315 0.706 0.666 0.627 0.592 0.558 0.596 0.564 0.547 0.513 0502 0467 0.460 0.424 0.422 0.386 0.432 0.376 0.327 0.284 0.247 0.335 0.279 0.233 0.194 0.162 9 10 0.507 0.456 0.452 0400 04040.351 0.361 0.308 0.322 0270 0.287 0.237 0.257 0208 0.229 0.182 0.205 0.160 0.183 0.140 11 12 13 14 15 0.650 0.585 06250557 0.601 0.530 0.577 0.505 0555 0481 0.534 0.458 0.513 1 0236 0.527 0.497 0.469 0.442 0217 0388 0.350 0.356 0.319 0.326 0.290 0.299 0.263 0.275 0.239 0215 0.187 0.163 0.141 0.123 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0108 0093 0.080 0.162 0 137 0.116 0.099 0.084 0.135 0.112 0.093 0.078 0.065 16 17 0 394 0.371 0.3390.292 0.317 0.270 0.252 0.231 0.218 0.198 0.163 0.146 0 123 0.108 0.107 0.093 0.071 0.069 0.054 0.045 Print Done Reference - X Periods . 1 2. 3 4 12% 0.893 1 690 2.402 3.037 3.606 14% 0.877 1.647 2.322 2914 3.433 15% 0.870 1626 2 283 2855 3352 16% 0.862 1.606 2 246 2798 3 274 18% 0.847 1566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 5 6 7 8 9 10 Present Value of Ordinary Annuity of $1 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 0.990 0.980 0.971 0.962 0.952 0943 0935 0.926 0917 0909 1.970 1.942 1.913 1.886 1.859 1833 1.808 1.783 1.759 1 736 2.941 2884 2.829 2.775 2.723 2673 2624 2577 2531 2487 3.902 3.808 3.717 3.630 3.546 3465 3.387 3.312 3.240 3.170 4.853 4.713 4.580 4452 4329 4.212 4.100 3.993 3.890 3.791 5.795 5.601 5 417 5 242 5.076 4.917 4.767 4.623 4.486 4355 6.728 6472 6230 6002 5.786 5.582 5.389 5.206 5.033 4.868 7 652 7325 7,020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 8.418 6 145 10.368 9.787 9253 8.750 8.306 7.887 7.499 7.139 6.805 6495 11 255 10.5759954 93858.863 8.384 7.943 7.536 7161 6 814 12 134 11348 106359.9869394 8.853 8.358 7.904 7487 7.103 13.004 12.106 11 29810563 9 899 9 295 8.745 8244 7786 7.367 13.865 12.849 11.98811.118 10.390 9.712 9.108 8.559 8061 7.606 14.718 13.578 12 561 11 652 10.838 10.1069.447 8.851 8 313 7.824 15.562.14.292 | 13.166. 12. 166 11 274 10.4771 9.763 9.1228544 8.022 4.111 3.889 4.564 4 288 4.968 4 639 5.328 4946 5.6505216 3.784 4.160 4487 4772 5019 3.685 4039 4344 4 607 4.833 3.326 3.605 3.837 4,031 4.192 3.498 3.812 4078 4303 4.494 2.656 4793 4.910 5.008 5092 11 12 13 14 15 5.938 6.194 6.424 6.628 8.811 5.453 5 234 5.660 5421 5.842 5.583 6.002 5.724 6.142 5.847 5.029 5.197 5.342 6.468 5.575 4327 4.439 4.533 4.611 4.675 16 17 6.974 6.265 7.120 6.373 5954 6.047 5.669 5749 5.162 5222 4730 4.775 Reference Future Value of $1 Periods 1 2 3 4 5 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1,061 1.093 1.126 1.159 4% 1.040 1.082 1.126 1.170 1.217 5% 1.050 1.103 1.158 1.216 1276 6% 1060 1.124 1.191 1.262 1338 7% 1.070 1.145 1.225 1.311 1403 8% 1.080 1.166 1.260 1.360 1.469 9% 1.090 1.188 1.295 1.412 1.539 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1,574 1762 14% 1.140 1.300 1.482 1.689 1.925 15% 1.150 1.323 1521 1.749 2011 6 7 8 9 10 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1 195 1219 1.194 1.230 1.267 1.305 1 344 1.266 1.316 1.369 1.423 1.480 1 340 1.407 1.477 1.561 1.629 1419 1.504 1.594 1.689 1.791 1.501 1.606 1.718 1.838 1.967 1.587 1.714 851 1.999 2.159 1.677 1.828 1.993 2.172 2.367 1.772 1.949 2144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.196 2502 2853 3.252 3.707 2313 2660 3.059 3518 4046 11 12 13 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1665 1.732 1.801 1.7101.898 1.796 2012 1.886 2 133 1,980 2.261 2079 2.397 2.105 2.252 2.410 2.579 2.759 2.332 2.518 2.720 2.937 3.172 3.426 3.700 2580 2.813 3.066 3.342 3.642 2.853 3.138 3.452 3.798 4.177 3.479 3.896 4.363 4.887 5.474 4 226 4.818 5.492 6.261 7,138 4.652 5350 6 153 7076 8137 15 16 17 1173 1.184 1.373 1400 1.605 1653 1873 1.948 2.183 2292 2.540 2.693 2.952 3.169 3.970 4328 4.596 5054 6.130 6.866 8.137 9.276 9358 10.76 Print Done i Reference Periods 1 2 3 4 5 1% 1.000 2010 3.030 4.060 5.101 2% 1.000 2020 3.060 4.122 5.204 3% 1.000 2030 3.091 4.184 5,309 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 15% 1.000 2.150 3.473 4.993 6.742 6 7 8 9 10 6.152 7.214 8.286 9.369 10.46 6.308 7.434 8.583 9.755 10.95 6.468 7.662 8.892 10.16 11.46 Future Value of Ordinary Annuity of $1 4% 5% 6% 7% 8% 9% 1.000 1.000 1.000 1.000 1.000 1.000 2.040 2.050 2.060 2.070 2080 2.090 3.122 3.153 3.184 3215 3.246 3.278 4.246 4310 4.375 4440 4.506 4573 5.416 5.526 5.637 5.751 5.867 5.985 6.633 6.802 6.975 7.153 7.336 7.523 7.898 8.142 8.394 8.654 8.923 9.200 9.214 9.549 9.897 10.260 10.64 11.03 10.58 11.03 11.49 11.98 12.49 13.02 12.01 12.58 13.18 13.82 14.49 15.19 13.49 14.21 14.97 15.78 16.65 17.56 15.03 15.92 16.87 17.89 18.98 20.14 16.63 17.71 18.88 20.14 21.50 22.95 18.29 19.60 21.02 22.55 24 21 26.02 20.02 21.58 23.28 25.13 27.15 29.36 7.716 9.487 11.44 13.58 15.94 8.115 10.09 12.30 14.78 17 55 8.536 10.73 13.23 16.09 19.34 8.754 11.07 13.73 16.79 20.30 11 12 13 14 15 11.57 12.68 13.81 14.95 16.10 12.17 13.41 14.68 15.97 17.29 12.81 14 19 15.62 1709 18.60 18.53 21.38 24.52 27.98 31.77 20.65 24.13 28.03 32.39 37.28 23.04 27.27 32.09 37 58 43.84 24.35 29.00 34 35 40.50 47.58 16 17 17.26 18.43 18.64 20.01 20.16 21.76 21.82 23.70 23 66 25.84 26 67 28 21 27.89 30.84 30.32 33.75 33.00 38.97 36.95 40 54 42.75 48.88 50.98 59.12 55.72 65.08 Print Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing Principles And Techniques

Authors: Richard L. Ratliff, W. Wallace, Walter B. Mcfarland, J. Loeboecke

2nd Edition

0894133268, 978-0894133268

More Books

Students also viewed these Accounting questions

Question

What percentage of US businesses are minority owned?

Answered: 1 week ago

Question

What are the other economic side effects of accidents?

Answered: 1 week ago