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A 40-year-old woman decides to put funds into a retirement plan. She can save $3,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar. $   At retirement how much can she withdraw each year for 25 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar. $   Appendix C

A 40-year-old woman decides to put funds into a retirement plan. She can save $3,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar. $   At retirement how much can she withdraw each year for 25 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar. $   Appendix C

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 40-year-old woman decides to put funds into a retirement plan. She can save $3,000 a year and earn 7 percent on this savings. How much will she have accumulated if she retires at age 65? Use Appendix C to answer the question. Round your answer to the nearest dollar.
$  

At retirement how much can she withdraw each year for 25 years from the accumulated savings if the savings continue to earn 7 percent? Use Appendix D to answer the question. Round your answer to the nearest dollar.
$  

Appendix C

 

Time Period (e.g., year) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1.981 1.868 1.766 1.674 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1.966 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 12345 6 Interest Factors for the Present Value of an Annuity of One Dollar 8 9 10 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 13 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6.424 5.842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7.606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4.979 4.160 3.569 3.124 2.778 8.312 7.824 6.974 6.265 5.669 5.162 4.730 4.003 3.503 3.088 2.758 8.544 8.002 7.120 6.373 5.749 5.222 4.775 4.059 3.518 3.097 2.763 8.756 8.201 7.250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 2.767 8.950 8.365 7.366 6.550 5.877 5.316 4.844 4.097 3.539 3.109 2.770 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 9.823 9.077
Transcribed Image Text:Time Period (e.g., year) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1.981 1.868 1.766 1.674 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1.966 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 12345 6 Interest Factors for the Present Value of an Annuity of One Dollar 8 9 10 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 13 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6.424 5.842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7.606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4.979 4.160 3.569 3.124 2.778 8.312 7.824 6.974 6.265 5.669 5.162 4.730 4.003 3.503 3.088 2.758 8.544 8.002 7.120 6.373 5.749 5.222 4.775 4.059 3.518 3.097 2.763 8.756 8.201 7.250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 2.767 8.950 8.365 7.366 6.550 5.877 5.316 4.844 4.097 3.539 3.109 2.770 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 9.823 9.077
Period (e.g., year) JOONG MLELE CARE 11 11.567 12.169 12 12.683 13.412 13 13.809 14.680 14 14.947 15.974 15 16.097 17.293 20 1% 2% 5% 7% 3% 4% 6% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 2.060 2.070 3.030 3.060 3.091 3.122 3.152 3.184 3.215 4.060 4.122 4.184 4.246 4.310 4.375 4.440 5.101 5.204 5.309 5.416 5.526 5.637 5.751 16 17.258 17 18.430 18 19.615 19 20.811 22.019 Interest Factors for the Future Value of an Annuity of One Dollar 6.152 6.308 7.214 7.434 8.286 8.583 9.369 9.755 10.462 10.950 25 28.243 10% 12% 14% 8% 9% 1.000 1.000 1.000 1.000 1.000 2.080 2.090 2.100 2.120 2.140 3.246 3.278 3.310 3.374 3.440 4.506 4.573 4.641 4.770 4.921 5.867 5.985 6.105 6.353 6.610 32.030 12.808 13.486 14.207 14.972 14.192 15.026 15.917 16.870 15.618 16.627 17.713 18.882 20.141 17.086 18.292 19.599 21.051 22.550 24.215 18.599 20.024 21.579 23.276 25.129 27.152 15.784 16.645 17.560 18.531 20.655 23.044 17.888 18.977 20.141 21.384 24.138 27.271 21.495 22.953 24.523 28.029 26.019 27.975 32.393 29.361 31.772 37.280 18.639 20.157 21.825 23.657 25.673 27.888 20.012 21.762 23.698 25.840 28.213 30.840 21.412 23.414 25.645 28.132 30.906 33.999 22.841 25.117 27.671 30.539 33.760 37.379 24.297 26.870 40.995 29.778 33.066 36.786 6.468 9.930 8.978 11.413 12.915 7.662 6.633 6.802 6.975 7.153 7.336 7.523 7.716 8.115 8.536 7.898 8.142 8.394 8.654 8.923 9.200 9.487 10.089 10.730 8.892 9.214 9.549 9.897 10.260 10.637 11.028 11.436 12.300 13.233 14.240 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.579 14.776 16.085 17.518 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549 19.337 21.321 16.499 20.798 25.958 36.459 41.646 47.727 54.865 63.249 73.106 98.347 133.33 181.87 30 34.785 40.568 47.575 56.085 66.439 79.058 94.461 113.283 136.308 164.494 241.333 356.878 20% 1.000 1.000 2.160 2.200 3.506 3.640 5.067 5.368 6.877 7.442 16% 84.701 25.732 30.850 32.089 36.786 37.581 43.672 43.842 51.659 30.324 33.003 35.950 42.753 50.980 60.925 87.442 33.750 36.974 40.545 48.884 59.118 71.673 105.93 37.450 41.301 45.599 55.750 68.934 84.140 128.11 41.446 46.018 51.159 63.440 78.969 98.603 154.74 45.762 51.160 57.275 72.052 91.025 115.370 186.68 249.210 471.98 32.150 39.580 48.496 59.195 72.035 530.310 1181.8
Transcribed Image Text:Period (e.g., year) JOONG MLELE CARE 11 11.567 12.169 12 12.683 13.412 13 13.809 14.680 14 14.947 15.974 15 16.097 17.293 20 1% 2% 5% 7% 3% 4% 6% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 2.060 2.070 3.030 3.060 3.091 3.122 3.152 3.184 3.215 4.060 4.122 4.184 4.246 4.310 4.375 4.440 5.101 5.204 5.309 5.416 5.526 5.637 5.751 16 17.258 17 18.430 18 19.615 19 20.811 22.019 Interest Factors for the Future Value of an Annuity of One Dollar 6.152 6.308 7.214 7.434 8.286 8.583 9.369 9.755 10.462 10.950 25 28.243 10% 12% 14% 8% 9% 1.000 1.000 1.000 1.000 1.000 2.080 2.090 2.100 2.120 2.140 3.246 3.278 3.310 3.374 3.440 4.506 4.573 4.641 4.770 4.921 5.867 5.985 6.105 6.353 6.610 32.030 12.808 13.486 14.207 14.972 14.192 15.026 15.917 16.870 15.618 16.627 17.713 18.882 20.141 17.086 18.292 19.599 21.051 22.550 24.215 18.599 20.024 21.579 23.276 25.129 27.152 15.784 16.645 17.560 18.531 20.655 23.044 17.888 18.977 20.141 21.384 24.138 27.271 21.495 22.953 24.523 28.029 26.019 27.975 32.393 29.361 31.772 37.280 18.639 20.157 21.825 23.657 25.673 27.888 20.012 21.762 23.698 25.840 28.213 30.840 21.412 23.414 25.645 28.132 30.906 33.999 22.841 25.117 27.671 30.539 33.760 37.379 24.297 26.870 40.995 29.778 33.066 36.786 6.468 9.930 8.978 11.413 12.915 7.662 6.633 6.802 6.975 7.153 7.336 7.523 7.716 8.115 8.536 7.898 8.142 8.394 8.654 8.923 9.200 9.487 10.089 10.730 8.892 9.214 9.549 9.897 10.260 10.637 11.028 11.436 12.300 13.233 14.240 10.159 10.583 11.027 11.491 11.978 12.488 13.021 13.579 14.776 16.085 17.518 11.464 12.006 12.578 13.181 13.816 14.487 15.193 15.937 17.549 19.337 21.321 16.499 20.798 25.958 36.459 41.646 47.727 54.865 63.249 73.106 98.347 133.33 181.87 30 34.785 40.568 47.575 56.085 66.439 79.058 94.461 113.283 136.308 164.494 241.333 356.878 20% 1.000 1.000 2.160 2.200 3.506 3.640 5.067 5.368 6.877 7.442 16% 84.701 25.732 30.850 32.089 36.786 37.581 43.672 43.842 51.659 30.324 33.003 35.950 42.753 50.980 60.925 87.442 33.750 36.974 40.545 48.884 59.118 71.673 105.93 37.450 41.301 45.599 55.750 68.934 84.140 128.11 41.446 46.018 51.159 63.440 78.969 98.603 154.74 45.762 51.160 57.275 72.052 91.025 115.370 186.68 249.210 471.98 32.150 39.580 48.496 59.195 72.035 530.310 1181.8
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