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.) 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.) 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.)

Answer 1

C: Amount($) 1 Amount saved after 9 years 2 Amount saved after 9 years 3 Amount saved after 9 years 487596.66 517147.97 530816.44 2 3 4

Amount($) Amount saved after 9 years Amount saved after 9 years Amount saved after 9 years -FV(12%,9.33000) -FV(12%,9.35000) -FV(14%,9.33000) 2 1 2 3 3