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1.  how much money will you have at the end of 20 years if you save $4,000 every year for those twenty years and earn 12% every year?   2. Let's say you have just retired and you have $1 million saved. Your desire is to die broke. You will draw out $121,930.25 each year to live on. Assuming you earn 10%a year on any money you haven't drawn out, at the end of which year will you run out of money ? (and that's when you should die). Give your answer as a number such as 11 and not 11th

1.  how much money will you have at the end of 20 years if you save $4,000 every year for those twenty years and earn 12% every year?   2. Let's say you have just retired and you have $1 million saved. Your desire is to die broke. You will draw out $121,930.25 each year to live on. Assuming you earn 10%a year on any money you haven't drawn out, at the end of which year will you run out of money ? (and that's when you should die). Give your answer as a number such as 11 and not 11th

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1.  how much money will you have at the end of 20 years if you save $4,000 every year for those twenty years and earn 12% every year?
 
2. Let's say you have just retired and you have $1 million saved. Your desire is to die broke. You will draw out $121,930.25 each year to live on. Assuming you earn 10%a year on any money you haven't drawn out, at the end of which year will you run out of money ? (and that's when you should die). Give your answer as a number such as 11 and not 11th
Future Value and Present Value Tables Table I Period 6% 10% 12% 14% 20% Future Value of $1.00(1+ ryp 1.040 1.060 1.080 1.100 1.120 1.140 1.200 1.082 1.124 1.166 1.210 1.254 1.300 1.440 3 1.125 1.191 1.260 1.331 1.405 1.482 1.728 1.170 1.263 1.361 1.464 1.574 1.689 2.074 1217 1.338 1.469 1.611 1.762 1.925 2.488 1.265 1.419 1.587 1.772 1.974 2.195 2.986 7 1.316 1.504 1.714 1.949 2211 2.502 3.583 1.369 1.594 1.851 2.144 2476 2.853 4.300 1.423 1.690 1.999 2.359 2.773 3.252 5.160 10 1.480 1.791 2.159 2.594 3. 106 3.707 6.192 11 1.540 1.898 2.332 2.853 3.479 4.226 7.430 12 1.601 2.012 2.518 3.139 3.896 4.818 8.916 13 1.665 2.133 2.720 3.452 4.364 5.492 10.699 14 1.732 2.261 2.937 3.798 4.887 6.261 12.839 15 1.801 2.397 3.172 4.177 5.474 7.138 15.407 20 2.191 3.207 4.661 6.728 9.646 13.743 38.338 30 3.243 5.744 10.063 17.450 29.960 50.950 237.380 40 4.801 10.286 21.725 45.260 93.051 188.880 1,469.800 Table II Period 4% 6% 8% 10% 12% 14% 20% Future Value of a Series of $1.00 Cash Flows (Ordinary Annuity) (1 + r)° – 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.040 2.060 2.080 2.100 2.120 2.140 2.220 3 3.122 3.184 3.246 3.310 3.374 3.440 3.640 4.247 4.375 4.506 4.641 4.779 4.921 5.368 5.416 5.637 5.867 6.105 6.353 6.610 7.442 6.633 6.975 7.336 7.7 16 8.115 8.536 9.930 7 7.898 8.394 8.923 9.487 10.089 10.730 12.916 8 9.214 9.898 10.637 11.436 12.300 13.233 16.499 9 10.583 11.491 12.488 13.580 14.776 16.085 20.799 10 12.006 13.181 14.487 15.938 17.549 19.337 25.959 11 13.486 14.972 16.646 18.531 20.655 23.045 32.150 12 15.026 16.870 18.977 21.385 24.133 27.271 39.580 13 16.627 18.882 21.495 24.523 28.029 32.089 48.497 14 18.292 21.015 24.215 27.976 32.393 37.581 59.196 15 20.024 23.276 27.152 31.773 37.280 43.842 72.035 20 29.778 36.778 45.762 57.276 75.052 91.025 186.690 30 56.085 79.058 113.283 164.496 241.330 356.790 1,181.900 40 95.026 154.762 259.057 442.597 767.090 1,342.000 7,343.900
Transcribed Image Text:Future Value and Present Value Tables Table I Period 6% 10% 12% 14% 20% Future Value of $1.00(1+ ryp 1.040 1.060 1.080 1.100 1.120 1.140 1.200 1.082 1.124 1.166 1.210 1.254 1.300 1.440 3 1.125 1.191 1.260 1.331 1.405 1.482 1.728 1.170 1.263 1.361 1.464 1.574 1.689 2.074 1217 1.338 1.469 1.611 1.762 1.925 2.488 1.265 1.419 1.587 1.772 1.974 2.195 2.986 7 1.316 1.504 1.714 1.949 2211 2.502 3.583 1.369 1.594 1.851 2.144 2476 2.853 4.300 1.423 1.690 1.999 2.359 2.773 3.252 5.160 10 1.480 1.791 2.159 2.594 3. 106 3.707 6.192 11 1.540 1.898 2.332 2.853 3.479 4.226 7.430 12 1.601 2.012 2.518 3.139 3.896 4.818 8.916 13 1.665 2.133 2.720 3.452 4.364 5.492 10.699 14 1.732 2.261 2.937 3.798 4.887 6.261 12.839 15 1.801 2.397 3.172 4.177 5.474 7.138 15.407 20 2.191 3.207 4.661 6.728 9.646 13.743 38.338 30 3.243 5.744 10.063 17.450 29.960 50.950 237.380 40 4.801 10.286 21.725 45.260 93.051 188.880 1,469.800 Table II Period 4% 6% 8% 10% 12% 14% 20% Future Value of a Series of $1.00 Cash Flows (Ordinary Annuity) (1 + r)° – 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.040 2.060 2.080 2.100 2.120 2.140 2.220 3 3.122 3.184 3.246 3.310 3.374 3.440 3.640 4.247 4.375 4.506 4.641 4.779 4.921 5.368 5.416 5.637 5.867 6.105 6.353 6.610 7.442 6.633 6.975 7.336 7.7 16 8.115 8.536 9.930 7 7.898 8.394 8.923 9.487 10.089 10.730 12.916 8 9.214 9.898 10.637 11.436 12.300 13.233 16.499 9 10.583 11.491 12.488 13.580 14.776 16.085 20.799 10 12.006 13.181 14.487 15.938 17.549 19.337 25.959 11 13.486 14.972 16.646 18.531 20.655 23.045 32.150 12 15.026 16.870 18.977 21.385 24.133 27.271 39.580 13 16.627 18.882 21.495 24.523 28.029 32.089 48.497 14 18.292 21.015 24.215 27.976 32.393 37.581 59.196 15 20.024 23.276 27.152 31.773 37.280 43.842 72.035 20 29.778 36.778 45.762 57.276 75.052 91.025 186.690 30 56.085 79.058 113.283 164.496 241.330 356.790 1,181.900 40 95.026 154.762 259.057 442.597 767.090 1,342.000 7,343.900
Table III Present Value of $1.00 1 (1 +rn Period 4% 6% 8% 10% 12 % 14% 16% 18 % 20% 22% 24% 26% 28% 30% 32% 962 943 .926 909 .893 877 862 847 833 820 .806 794 781 769 758 925 890 .857 826 797 769 743 718 694 .672 .650 630 .610 .592 574 3 889 840 794 751 712 675 641 .609 579 551 .524 500 477 455 435 4 855 792 735 683 636 592 552 516 482 451 423 397 373 350 329 5 822 747 .681 .621 .567 .519 476 437 402 370 341 315 291 269 250 790 705 .630 .564 .507 456 410 370 335 303 275 250 227 207 189 7 760 665 .583 513 452 400 354 314 279 249 222 198 178 159 143 731 .627 540 467 404 351 305 266 233 204 179 157 139 123 108 703 592 500 424 361 308 263 225 194 .167 144 .125 .108 .094 082 10 676 558 463 386 322 270 227 191 162 .137 .116 099 085 .073 062 11 .650 527 429 350 287 237 195 162 135 112 .094 079 .066 .056 .047 12 .625 497 397 319 257 208 .168 137 112 .092 076 062 .052 .043 .036 13 .601 469 368 290 .229 .182 145 116 093 075 .061 050 .040 .033 027 14 577 442 340 263 .205 .160 .125 .099 078 .062 .049 039 .032 .025 .021 15 555 417 315 239 .183 140 .108 .084 065 .051 .040 .031 .025 .020 .016 20 456 312 215 149 104 073 .051 .037 026 019 014 .010 .007 .005 .004 30 308 174 .099 057 .033 .020 .012 .007 .004 .003 .002 .001 .001 40 208 .097 046 .022 .011 .005 .003 001 .001 Table IV Present Value of Series of $1.00 Cash Flows - (1 + r")/ Period 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 25% 26% 28% 30% 1 0.962 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 0.800 0.794 0.781 0.769 2 1.886 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 1.492 1.457 1.440 1.424 1.392 1.361 3 2.775 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 2.042 1.981 1.952 1.923 1.868 1.816 4 3.630 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 2.494 2.404 2.362 2.320 2.241 2.166 4.452 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 2.864 2.745 2.689 2.635 2.532 2.436 6. 5.242 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 3.167 3.020 2.951 2.885 2.759 2.643 6.002 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 3.416 3.242 3.161 3.083 2.937 2.802 8 6.733 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 3.619 3.421 3.329 3.241 3.076 2.925 9 7.435 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 3.796 3.566 3.463 3.366 3.184 3.019 10 8.111 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 3.923 3.682 3.571 3.465 3.269 3.092 11 8.760 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 4.035 3.776 3.656 3.544 3.335 3.147 12 9.385 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 4.127 3.851 3.725 3.606 3.387 3. 190 13 9.986 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 4.203 3.912 3.780 3.656 3.427 3.223 14 10.563 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 4.265 3.962 3.824 3.695 3.459 3.249 15 11.118 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 4.315 4.001 3.859 3.726 3.483 3.268 20 13.590 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 4.460 4.110 3.954 3.808 3.546 3.316 30 17.292 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 4.534 4.160 3.995 3.842 3.569 3.332 40 19.793 15.046 11.925 9.779 8.244 7.105 6.234 5.548 4.997 4.544 4.166 3.999 3.846 3.571 3.333
Transcribed Image Text:Table III Present Value of $1.00 1 (1 +rn Period 4% 6% 8% 10% 12 % 14% 16% 18 % 20% 22% 24% 26% 28% 30% 32% 962 943 .926 909 .893 877 862 847 833 820 .806 794 781 769 758 925 890 .857 826 797 769 743 718 694 .672 .650 630 .610 .592 574 3 889 840 794 751 712 675 641 .609 579 551 .524 500 477 455 435 4 855 792 735 683 636 592 552 516 482 451 423 397 373 350 329 5 822 747 .681 .621 .567 .519 476 437 402 370 341 315 291 269 250 790 705 .630 .564 .507 456 410 370 335 303 275 250 227 207 189 7 760 665 .583 513 452 400 354 314 279 249 222 198 178 159 143 731 .627 540 467 404 351 305 266 233 204 179 157 139 123 108 703 592 500 424 361 308 263 225 194 .167 144 .125 .108 .094 082 10 676 558 463 386 322 270 227 191 162 .137 .116 099 085 .073 062 11 .650 527 429 350 287 237 195 162 135 112 .094 079 .066 .056 .047 12 .625 497 397 319 257 208 .168 137 112 .092 076 062 .052 .043 .036 13 .601 469 368 290 .229 .182 145 116 093 075 .061 050 .040 .033 027 14 577 442 340 263 .205 .160 .125 .099 078 .062 .049 039 .032 .025 .021 15 555 417 315 239 .183 140 .108 .084 065 .051 .040 .031 .025 .020 .016 20 456 312 215 149 104 073 .051 .037 026 019 014 .010 .007 .005 .004 30 308 174 .099 057 .033 .020 .012 .007 .004 .003 .002 .001 .001 40 208 .097 046 .022 .011 .005 .003 001 .001 Table IV Present Value of Series of $1.00 Cash Flows - (1 + r")/ Period 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 25% 26% 28% 30% 1 0.962 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 0.800 0.794 0.781 0.769 2 1.886 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 1.492 1.457 1.440 1.424 1.392 1.361 3 2.775 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 2.042 1.981 1.952 1.923 1.868 1.816 4 3.630 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 2.494 2.404 2.362 2.320 2.241 2.166 4.452 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 2.864 2.745 2.689 2.635 2.532 2.436 6. 5.242 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 3.167 3.020 2.951 2.885 2.759 2.643 6.002 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 3.416 3.242 3.161 3.083 2.937 2.802 8 6.733 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 3.619 3.421 3.329 3.241 3.076 2.925 9 7.435 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 3.796 3.566 3.463 3.366 3.184 3.019 10 8.111 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 3.923 3.682 3.571 3.465 3.269 3.092 11 8.760 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 4.035 3.776 3.656 3.544 3.335 3.147 12 9.385 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 4.127 3.851 3.725 3.606 3.387 3. 190 13 9.986 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 4.203 3.912 3.780 3.656 3.427 3.223 14 10.563 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 4.265 3.962 3.824 3.695 3.459 3.249 15 11.118 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 4.315 4.001 3.859 3.726 3.483 3.268 20 13.590 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 4.460 4.110 3.954 3.808 3.546 3.316 30 17.292 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 4.534 4.160 3.995 3.842 3.569 3.332 40 19.793 15.046 11.925 9.779 8.244 7.105 6.234 5.548 4.997 4.544 4.166 3.999 3.846 3.571 3.333
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