Question

You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $33,000 at the end of each year for the next 9 years. You expect to earn 12 percent each year. Required: 1. Determine how much you will have saved after 9 years. (Future Value of $1. Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answer to 2 decimal places.) Balance in the Savings Account 2. Determine the amount saved if you were able to deposit $35,000 each year. (Future Value of $1, Present Value of $1. Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answer to 2 decimal places.) Balance in the Savings Account 3. Determine the amount saved if you deposit $33,000 each year, but with 14 percent interest. (Future Value of $1. Present Value of $1, Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answer to 2 decimal places.) Balance in the Savings Account

Answer 1

1. Balanu in sarings Account → Installment x Fraf (laul.,9 yrs) 33,000 x 14.7757 487, 598.1 $. Cor) 484,608 $. 2. It installment in 35,000 >> 35,000 x 14.757 2 517,149.5$ $ 577,160 3 33.000 Installment, 14%. Intot > - > 33,000x Fraf (147,947) 33,0008 16,085 530,805