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You know that paying yourself by depositing money in a savings account is a prudent start to your retirement plan. You determined that, based on

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You know that paying yourself by depositing money in a savings account is a prudent start to your retirement plan. You determined that, based on your other obligations, you can save $7,000.00 per year via an annual, single year-end deposit. You are 40 years old now, so your money will grow for the next 25 years until you turn 65. You will open a savings account at the US Bank branch near your home. Its savings accounts are paying 6% interest. The following table shows the future value factors for various periods and interest rates: Complete the following table by entening relevant values. Then use the table of future value factors co carculate the value of this nest eqg. What will be the value of this money in 25 years? (Note: Round to two decimal places.) You began saving at age 40. If you had started five years earlier, so that your funds would grow for years, what would your nest egg be worth, assuming the same interest rate and annual savings amount? (Note: Round to two decimal places.) Suppose that a new bank in town offers 8% interest. How much would your yearly deposits be worth if you open a savings account there, assuming that your funds are invested for 25 years and all other factors remain the same? Complete the following table by entering relevant values. Then use either the table of future value factors, the future value formula, or your financial calculator to calculate the value of this nest egg. (Hint: Remember that the fVA factor is based on the new interest rate now.) What will be the value of this money in 25 years? (Note: Round to two decimal places.) Again, if you had started your savings program five years eariver, what would your nest eso be worth, assuming that your funds were invested at thin What will be the value of this money in 25 years? (Note: Round to two decimal places.) You began saving at age 40. If you had started five years earlier, so that your funds would grow for years, what would your ne: worth, assuming the same interest rate and annual savings amount? (Note: Round to two decimal places.) Suppose that a new bank in town offers 8% interest. How much would your yearly deposits be worth if you open a savings account there, assi that your funds are invested for 25 years and all other factors remain the same? Complete the following table by entering relevant values. Then use either the table of future value factors, the future value formula, or your finan calculator to calculate the value of this nest egg. (Hint: Remember that the FVA factor is based on the new interest rate now.) What will be the value of this money in 25 years? (Note: Round to two decimal placesi) Again, If you had started your savings program five years earlie, what would your nest egg be worth, assuming that your funds were invested at this higher interest rate, the annual savings amount remains the same, and the funds are invested for years? (Note: Round to two decimal places.)

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