You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $31,600 at the
You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $31,600 at the end of each year for the next 10 years. You expect to earn 9 percent each year.
Required:
1. Determine how much you will have saved after 10 years.
2. Determine the amount saved if you were able to deposit $34,100 each year.
3. Determine the amount saved if you deposit $31,600 each year, but with 11 percent interest.
TABLE 11.1A Future Value of $1 Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% O 1 2 3 4 5 6 1.0000 1.0000 1.0000 10000 10000 10000 10000 1.0200 1.0300 10375 1.0400 10425 1.0500 10600 1.0404 10609 1.0764 1.0816 1.0868 1.1025 1.1236 1.0612 10927 11168 1.1249 1.1330 1.1576 1.1910 1.0824 1.1255 1.1587 1.1699 11811 1.2155 1.2625 1.1041 1.1593 1.2021 1.2167 1.2313 1.2763 1.3382 1.1262 1.1941 1.2472 1.2653 1.2837 1.3401 1.4185 1.1487 1.2299 1.2939 13159 1.3382 1.4071 1.5036 1.1717 1.2668 1.3425 1.3686 1.3951 1.4775 1.5938 1.1951 1.3048 1.3928 1.4233 1.4544 15513 16895 1.21901.3439 1.4450 1.4802 1.5162 1.6289 1.7906 1.4859 1.8061 2.0882 2.1911 2.2989 2.6533 3.2071 9% 10% 11% 12% 13% 14% 15% 1.0000 10000 10000 1.0000 10000 10000 10000 1.0900 1.1000 1.1100 1.1200 11300 1.1400 1.1500 10000 10000 10700 10800 1.1449 1.1664 1.2250 1.2597 1.3108 1.3605 1.4026 1.4693 1.5007 1.5869 1.6058 1.7138 1.7182 18509 1.8385 1.9990 1.9672 2.1589 3.8697 4.6610 20% 25% 10000 10000 1.2000 1.2500 9 10 20 Periods 0 1 1.1881 12100 1.2321 1.2544 1.2769 1.2996 1.3225 1.4400 1.5625 3 1.2950 1.3310 1.3676 1.4049 1.4429 1.4815 1.5209 1.7280 1.9531 4 5 6 1.4116 1.4641 1.5181 1.5735 1.6305 1.6890 1.7490 2.0736 2.4414 1.5386 1.6105 1.6851 17623 1.8424 1.9254 2.0114 2.4883 3.0518 1.6771 17716 1.8704 1.9738 2.0820 2.1950 2.3131 2.9860 3.8147 1.8280 1.9487 2.0762 2.2107 2.3526 2.5023 2.6600 3.5832 4.7684 1.9926 2.1436 2.3045 2.4760 2.6584 2.8526 3.0590 4.2998 5.9605 2.1719 2.3579 2.5580 2.7731 3.0040 3.2519 3.51795.1598 7.4506 2.3674 2.5937 2.8394 3.1058 3.3946 3.7072 4.0456 6.1917 9.3132 5.6044 6.7275 8.0623 9.6463 11.5231 13.7435 16.3665 38.3376 86.7362 8 9 10 20 TABLE 11.3A Future Value of an Annuity of $1 Periods 1 2 3 2% 1.0000 2.0200 3.0604 4.1216 3% 10000 2.0300 3.0909 4.1836 3.75% 10000 2.0375 3.1139 4.2307 4% 10000 2.0400 3.1216 4.2465 4.25% 1.0000 2.0425 3.1293 4.2623 5% 1.0000 2.0500 3.1525 4.3101 6% 7% 8% 1.0000 10000 10000 2.06002.0700 2.0800 3.1836 3.21493.2464 4.3746 4.4399 4.5061 5.2040 5.3091 5.3893 5.4163 5.4434 5.5256 5.6371 5.7507 5.8666 10 20 Periods* 1 2 3 4 5 6.3061 6.4684 6.5914 6.6330 6.6748 6.80196.9753 7.4343 7.6625 7.8386 7.8983 7.9585 8.1420 8.3938 8.5830 8.8923 9.1326 9.2142 9.2967 9.5491 9.8975 9.7546 10.1591 10.4750 10.5828 10.6918 11.0266 11.4913 10.9497 11.4639 11.8678 12.0061 12.1462 12.5779 13.1808 24.2974 26.8704 29.0174 29.7781 30.5625 33.0660 36.7856 9% 10% 11% 12% 13% 14% 15% 10000 10000 10000 10000 10000 10000 10000 2.0900 2.1000 2.1100 2.1200 2.1300 2.1400 2.1500 3.2781 3.3100 3.3421 3.3744 3.4069 3.4396 3.4725 4.5731 4.6410 4.7097 4.7793 4.8498 4.9211 4.9934 5.9847 6.1051 6.2278 6.3528 6.4803 6.6101 6.7424 71533 8.6540 10.2598 11.9780 13.8164 40.9955 20% 1.0000 2.2000 3.6400 5.3680 74416 73359 8.9228 10.6366 12.4876 14.4866 45.7620 25% 10000 2.2500 3.8125 5.7656 8.2070 6 7.5233 77156 7.9129 8.1152 8.3227 8.5355 8.7537 9.9299 11.2588 9.2004 9.4872 9.7833 10.0890 10.4047 10.7305 11.0668 12.9159 15.0735 000 11.0285 11.4359 11.8594 12.2997 13.0210 13.5975 14.1640 14.7757 12.7573 15.4157 13.2328 16.0853 13.7266 16.7856 16.4991 19.8419 20.7989 25.8023 15.1929 15.9374 16.7220 17.5487 18.4197 19.3373 20.3037 25.9587 33.2529 20 51.1601 57.2750 64.2028 72.0524 80.9468 91.0249 102.4436 186.6880 342.9447 There is one payment each period
