Question

3 ances Knowledge Check 01 Dave plans to deposit $3,300 in an IRA account on April 15, Year 1. The account will earn 3% annua
TABLE Future Value of $1 FV-511-01 NO 9.046 10.04 12.09 20.046 6.04 1.00000 7.045 107000 114490 1 12000 120000 108000 1.16610
TABLE 2 Present Value of $1 $1 (1+1) PV 01 IN 1.596 20% 2.544 3.09 3.59 4.59 5.046 5.5 70% 8.09 9.046 10.046 11.096 12.09 20.
TABLE 3 Future Value of an Ordinary Annuity of $1 ( 10-1 FVA 11.096 6.04 10.09 2009 12.09 1.046 951 96096 2.09 304 IN 3.54 40
TABLE 4 Present Value of an ordinary Annuity of $1 1 PVA- 8.09 SI 2018 6.046 2.5% ST 4,096 3.046 0.97087 19147 096114 7.046 0
TABLE S Future Value of an Annuity Due of $1 (1+1)-1 FVAD *(1+1) 11.0 12.04 3.044 45 1044 6046 5.04 204 10300 10.09 11000 5.5
TABLE 6 Present Value of an Annuity Due of $1 PVAD *(1+0 5.04 3.59 154 9.646 6.05 8.09 1044 5.596 34 1.00000 2016 100000 1980
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Answer #1

Solution:

Future value = $3,300 * Cumulative FV factor at 3% for 15 periods of annuity due

= $3,300 * 19.1569

= $63,218

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