Table 12-1 Future Value (Amount) of an Ordinary Annuity of $1 Periods Periods 15 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 22.00500 2.01000 2.015002.020002.03000 2.09000 2.05000 33,01502 3.03010 3.04522 3.06040 3.09090 3.12160 3.15250 4.03010 4.06040 4.09090 4.12161 4.18363 4.34646 4.31013 5 5.50 5.10101 5.15227 5.20404 5.30914 5.41632 5.52563 1.00000 2.06000 3.18360 437462 5.63709 1.00000 2.07000 3.21490 4.43994 5.75074 1.00000 2.08000 3.24640 4.50611 5.86660 2 3 4 5 6,07550 6.15202 6.229556_30812 6.46841 6.63298 6.80191 7 7.10588 7.21354 7.32299 7.43428 7.66246 7.898.29 8.14201 8 8.14141 8.28567 8.43284 8.582978.89234 9.21423 9.5-4911 9 9.18212 9.36853 9.55933 9.75463 10.15911 10.58280 11.02656 10 10.22803 1046221 10.70272 10.94972 11.46388 12.00611 12.57789 6.97512 8.39384 9.89747 11.49132 13.18079 7.15329 8.65402 10.25980 11.97799 13.81645 7.33593 8.92280 10.63663 12.48756 14.48656 6 7 8 9 10 11 12 13 11.27917 11.56683 11.86326 12.16872 12.80780 13.48635 14.20679 12.33556 12.68250 13.04121 13.41209 14.19203 15.02581 1591713 13.39724 13.80933 14.23683 14.68033 15,61779 16,62684 17.71298 14.46423 14.94742 15.45038 15.97394 17.08632 18.29191 19.59863 15.53655 16.09690 16,68214 17.29342 18.59891 20.02359 21.57856 14.97164 16,86994 18.88214 21.01507 23.27597 15.7810 17.88845 20.14066 22.55049 25.12902 16.64549 18.97713 21.49530 24.21-492 27.15211 12 13 15 15 16 17 18 19 20 16,61423 17.25786 17.93237 18.63929 20.15688 21.82453 23.65749 25.67253 27.88805 30.32428 17.69730 18.43044 19.20136 20.01207 21.76159 23.69751 25.84037 28.21288 30.84022 33.75023 18.78579 19.61475 20.48938 21.41231 23.41444 25.64541 28.13238 30.90565 33.99903 37.45024 19.87972 20.81090 21.79672 22.84056 25.11687 27.67123 30.53900 33.75999 37.37896 41.44626 20.97912 22.01900 23.12367 24.29737 26.87037 29.77808 33.06595 36.78559 40.99549 45.76196 16 17 18 19 20 21 22 23 21 22 22.08401 23.23919 24.47052 25.78332 28.67649 31.96920 35.71925 23.19443 24.47159 25.83758 27.29898 30.53678 34.34797 38.50521 24.31040 25.71630 27.22514 28.84496 32.45288 36,61789 41.43048 25.43196 26.97346 28.63352 30.42186 34.42647 39,08260 44.50200 26.55912 28.24320 30.06302 32.03030 36.45926 41.64591 47.72710 39.99273 43.39229 46.99583 50.81558 54.86451 44.86518 50.42292 49.00574 55.45676 53.43614 60.89330 58.17667 66,76476 63.24904 73.10594 25 25 27 28 27.69191 29.52563 31.51397 33.67091 38.55304 44.31174 51.11345 28.83037 30.82089 32.98668 35.34432 40.70963 47.08421 54.66913 29.97452 32.12910 34.48148 3705121 42.93092 49.96758 58.40258 31.12439 33.450.39 35.99870 38.79223 45.21885 52.96629 62.32271 32.28002 34.78489 37.53868 40.56808 47.57542 56,08494 66.43885 59.15638 63.70577 68.52811 73.69980 79.05819 68.67647 79.95142 74.48382 87.35077 80.69769 95.33883 87.34653 103.96594 94.46079 113.28321 26 27 28 29 30 30 8.00 8.25 8.50 8.75 9.00 9.25 9.50 9.75 10.00 10.25 10.50 10.75 11.00 11.25 11.50 11.75 12.00 12.25 12.50 12.75 13.00 20.28 20.40 20.52 20.64 20.76 20.88 21.01 21.13 21.25 21.38 21.50 21.62 21.75 21.87 22.00 22.12 22.25 22.38 22.50 22.63 22.76 12.14 12.27 12.40 12.54 12.67 12.81 12.94 13.08 13.22 13.36 13.50 13.64 13.78 13.92 14.06 14.21 14.35 14.50 14.64 14.79 14.94 9.56 9.71 9.85 10.00 10.15 10.30 | 10.45 10.60 10.75 10.90 11.06 11.21 11.37 11.53 11.69 11.85 12.01 12.17 12.33 12.49 12.66 8.37 8.53 8.68 8.84 9.00 9.16 9.33 9.49 9.66 9.82 9.99 10.16 10.33 10.50 10.67 10.84 11.02 11.19 11.37 11.54 11.72 7.72 7.89 8.06 8.23 8.40 8.57 88.74 8.92 9.09 9.27 9.45 9.63 9.81 9.99 10.17 10.35 10.54 10.72 10.91 11.10 11.28 7.34 7.52 7.69 7.87 8.05 8.23 8.41 8.60 8.78 8.97 9.15 9.34 9.53 9.72 9.91 10.10 10.29 10.48 10.68 10.87 11.07 7.11 7.29 7.47 7.66 7.84 8.03 8.22 8.41 8.60 8.79 8.99 9.18 9.37 9.57 9.77 9.96 10.16 10.36 10.56 10.76 10.96 6.96 7.15 734 7.53 772 7.91 8.11 8.30 8.50 8.69 8.89 9.09 9.29 9.49 9.69 9.89 10.09 10.29 10.49 10.70 10.90 30. You are a manager for Vector International. You earn $50,000 per year and are in the 28% federal income tax bracket. Each year you contribute $2,500 tax free to your individual retirement account, IRA. The account earns 8% annual interest. In addition, the amount of tax that you save each year by making these pre-tax" contributions is invested in a taxable aggressive growth mutual fund averaging 15%. a. How much tax do you save each year by making the retirement fund contributions? b. How much will the retirement fund be worth in 30 years? c. Although the income from this investment is taxable each year, how much will the "tax savings" fund be worth in 30 years
