As part of your retirement plan, you have decided to deposit $6,000 at the beginning of each year into an account paying 5% interest compounded annually. (Round your answers to the nearest cent.)
(a)
How much (in $) would the account be worth after 10 years?
$
(b)
How much (in $) would the account be worth after 20 years?
$
(c)
When you retire in 30 years, what will be the total worth (in $) of the account?
$
(d)
If you found a bank that paid 6% interest compounded annually rather than 5%, how much (in $) would you have in the account after 30 years?
$
(e)
Use the future value of an annuity due formula to calculate how much (in $) you would have in the account after 30 years if the bank in part (d) switched from annual compounding to monthly compounding and you deposited $500 at thebeginning of each month instead of $6,000 at thebeginning of each year.
Extracted text: 8867 Periods 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% Periods 0.91743 0.90909 0.90090 0.89286 0.88496 0.87719 0.86957 0.86207 0.85470 0.84746 1.75911 1.73554 1.71252 1.69005 1.66810 1.64666 1.62571 1.60523 1.58521 1.56564 2.53129 2.48685 2.44371 2.40183 2.36115 2.32163 2.28323 2.24589 2.20958 2.17427 4. 3.23972 3.16987 3.10245 3.03735 2,97447 2.91371 2.85498 2.79818 2,74324 2.69006 5. 3.88965 3.799079 3.69590 3.60478 3.51723 3,43308 3.35216 3.27429 3.19935 3.12717 4.48592 4.35526 4.23054 4.11141 3.99755 3.78448 3.68474 3.58918 3,49760 9: 5.03295 4.86842 4.71220 4.56376 4.42261 4,28830 4.16042 4.03857 3.92238 3.81153 7 8. 5.53482. 5.33493 5.14612 4.96764 4.79877 4.63886 4.48732 4.34359 4.20716 4.07.757 8. 6: 5.99525 5.75902 5.5370S 5.32825 5.13166 4.94637 4.77158 4.60654 4.45057 4.30302 6.41766 6.14457 5.88923 5.65022 5.42624 5.21612 5.01877 4.83323 4.65860 4.49409 11 6.80519 6.49506 6:20652 5.93770 5.68694 5.45273 5.23371 5.02864 4.83641 4.65601 12 7.16073 681369 6.49236. 6.19437 S.91765 5.66029 5.42062 5.19711 4.98839 4.79322 12 13 7.48690 7.10336 6.74987 6.42355 6.12181 5.84236 5,58315 5.34233 5.11828 4.90951 13 14 7.78615 7.36669 6.98187 6.62817 6.30249 6.00207 5.72448 5.46753 5.22930. 5.00806 14 15 8.06069 7.60608 7.19087 6.81086 6.46238 6.14217 5.84737 5.57546. $.32419 5.09158 15 16 8.312567.82371 7.37916 6.97399 6.60388 6.26506 5.95423 5.66850 5:40529 5.16235 16 17 8,54363 8.02155 7.54879. 17.11963 6,72909 6.37286 6.04716 5.74870 5.47461 5.22233 17 18: 8. 8.20141 7.70162 7.24967 6.83991 6.46742 6.12797 5.81785 5.53385 5.27316 18 19 8.95011. 8.36492 7.83929 7.36578 6.93797 6.55037 6.19823 5.87746 5.58449 5.31624 19 20 9.12855 8.51356 7.96333 7.46944 7.02475 6.62313 6.259335.92884 5.62777 5.35275 20 21 9.29224 8.64869 8.07507 7,56200 7.10155 6.68696 6.31246 5.97314 5.66476 5.38368 21 22 9:44243 8.77154 8.17574 7.64465 7.16951 6.74294 6.35866 6.01133 5.69637 5.40990 22 23 9.58021 8.88322 8.26643 7.71843 722966 6.79206 6.39884. 6.04425 5.72340 5,43212 23 24 9.70661 8.98474 8,34814 7.78432 7.28288 6.83514 6.43377 6.07263 5.74649 5.45095 24 25 9.82258 9.07704 8.42174 7.84314 7,32998 6.87293 .6.46415 6.09709 5.76623 5.46691 25 26 9,92897 9.16095 8:48806 7.89566 7:37167 6,90608 6.49056 6.11B18 5.78311 5.48043 26 27 10.02658 9.23722 8.54780 7.94255 7.40856 6.93515 651353 6.13636 5.79753 5.49189 27 28 10.11613 9330657 8,60162 798442 7:44120 6.96066 6.53351 6.15204 5.80985 5.50160 28 29 10.19828 936961 8.65011 8,02181 7.47009 6.98304 6.55088 6.16555 5.82039 5.50983 29 30 10.27365 9.42691 8.69379, 8.05518 7.49565 7.00266. 6.56598 6,17720 5.82939 5.51681 30 31 10,34280 9.47901 8.73315 8.08499 7.51828 7.01988 6.57911 6.18724 5.83709 5.52272 31 32 10.40624: 9.52638 8,76860 8.11159 753830 7.03498 6.59053 6.19590 5.84366 5.52773 32 33 10.46444 9.56943. 8.80054 8.13535 7.55602. 7.04823 6.60046 6.20336 5.84928 5.53197 33 34 10.51784 9.60857 8.82932 8.15656 7.57170 :7.05985 6.60910 6.20979 5.85409 5.53557 34 35 10.56682 9.64416 8.85524. 8.17550 7.58557 7.07005 6.61661 6.21534 5,85820 5:53862 35 36 10.61176 9.67651 8,87859 8.19241: 7.59785 7.07899 6.62314 6.22012 5.86171 5.54120 36 (1 + i)" – 1 i(1 + i)" and rounded to five decimal places, where i is the interest The valhues in Table 12-2 were generated by the formula rate per period and n is the total number of periods.
Extracted text: Periods 1% 2% 3% 4% 5% 6% 7% 8% Periods 0.96154 60988 0.99502 0.99010 0.98522. 0.98039 0.97087 0.95238 0.94340 0.93458 0.92593 1.98510 1.97040 1.95588 1.94156 191347 1.85941 1.83339 1.80802 1.78326 3. 2,97025 2,94099 2.91220 2.88388 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710 4 3.95050 3.90197 3.85438 3.80773 3.71710 3.62990 354595 3.46511 3.38721 3.31213 4.92587 4.85343 4.78264 4.71346 4:57971 4:45182 4.32948 4.21236 4.10020 3.99271 5.89638 5.79548 5.69719 5.60143. 5.41719 524214 5.07569 491732 4.76654 4.62288 6.86207 6.72819 6.59821 647199 6.23028 6.00205 5.78637 5.58238 5.38929 5.20637. 7.82296 7.65168 7.48593 7.32548 7.01969 6.73274 6:46321 6.20979 5.97130 5.74664 8.77906 8.56602 8.36052. 8.16224 7,78611 7.43533 7.10782 6.80169 6.51523. 6.24689 10 9.73041 9,47130 9.22218 8.98259 B.53020 8.11090 7.721737.36009 7.02358 6.71008 11 10.67703 10:36763 100712 9.78685 9,25262 8.76048 8.30641 7.88687 7.49867 7.13896 12 11.61893 112550810.90751 1057534 9.95400 9.38507 8.86325: 8.38384 7.94269 7.53608 12 13 12.55615 12.113374 11:73153 11.34837 10.63496 9.98565 9.39357 8.85268 8:35765 7.90378 13 14 13 48871 13,00370 12.54338 12.10625 1129607 10.56312 9.89864 9.29498 8.74547 8.24424 14 15 14.41662 13.86505 13.34323 12.84926 11.93794 11.11839 10.37966 9.71225 9.10791 8.55948 15 16 15.33993 14.71787 14:13126 13.57771. 12.56110 11.65230 1083777 10.10590 9.44665 8.85137 16 17 16.25863 15.56225 1490765 14,29187 13.16612 12.16567 11.27407 10.47726 9.76322 9.12164 17 18 17.17277 16.39827 15.67256 14.99203 13.75351: 12.65930 11.68959 10:82760 10.05909 9.37189 18 19 18.08236 17.22601 16:42617 15.67846 14.32380 13.13394 12.0853211:15812 1033560 9.60360 19 18.98742 18.04555 17.16864 16.35143 14.87747 13.59033 12.46221 11:46992 10.59401 981815 20 券 :20 21 19.88798 18.85698 17.900O14 17.01121 15.41502 14.02916 12.82115 11.76408 10.83553 10.01680 21 22 20 78406 19.66038 18.62082 17.6580515.9369214.45112 13.16300 12.04158 11.06124 10,20074 22 23 21.67568 2045582 1933086 18,29220 16.4436114.85684 13.4885712.30338 1.27219 10.37106 23 24 22,56287 21:24339 20.03041 18.91393 16.93554 15.2469613.79864 12.55036 1.46933 10.52876 24 25 23.44564 2202316 20.71961 19.52346 17:41315 15.62208 14.09394. 12.78336 11.65358 10.67478 25 26 24.32402 22.79520 21.39863 20.12104 17.87684 15.98277 14.37519 13.00317 11.82578 10.80998 26 27 25.19803 23.55961 22.06762 20,70690 18.32703 16.32959 14.64303 13.21053 11 98671 10.93516 :27 28 26.06769 2431644 22.72672 21.28127 18.76411 16.66306 14.89813 13.40616 12.13711: 11,05108 28 29 26.93302 25.06579 23.3760821.84438 19.18845 16,98371 15 14107 13.59072 12,27767 1L15841 29 30 27.79405 25.80771 24.01584 22.39646 19.60044 17.29203 15.3724513.76483 12.40904 11.25778: 30 31 28.65080 26.54229 24.6461522.9377020.00043 17.58849 15.59281 13.92909 12.53181 T1:34980 31 32 29.50328 27.26959 25.26714 23.46833 20.38877 17.8735515.80268 14.08404 12.64656 1143500 32 33 30.35153 27.98969 25.87895 23.98856 20:7657918.14765 16.00255 14.23023 12.75379 1151389 33 34 31.19555 28.70267 26.481173 24.49859 21.13184. I18 41120 16.19290 14.36814 12.85401 11:58693 34 35 32.03537 29.40858 27.0755924.99862 21.4872218.66461 16.37419 14,49825 12.94767 11.65457 35 36 32.87102 30.1075127.6606825.48884. 21.83225 18.90828 16.54685 14.6209913.03521 11.71719. 36 (1 + i)" – 1 i(1 + i)" and rounded to five decimal places, where i is the interest The values in Table 12-2 were generated by the formula rate per period and n is the total number of periods. :二 bo