Elaine Romberg prepares her own income tax return each year. A tax preparer would charge her $60 for this ser 12 years, how much does Elaine gain from preparing her own tax return? Assume she can earn 5 percent on her B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Answer is complete but not entirely correct.
Elaine Romberg prepares her own income tax return each year. A tax preparer would charge her $60 for this ser 12 years, how much does Elaine gain from preparing her own tax return? Assume she can earn 5 percent on her B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Answer is complete but not entirely correct.
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
Related questions
Question
Transcribed Image Text:Exhibit 1-B Future value (compounded sum) of $1 paid in at the end of each period for a given number of time periods (an annuity)
Period
3%
5%
8%
9%
2%
1
1
1
1
1
2.08
2.09
3.246
3.278
4.506
4.573
5.867
7.336
8.923
10.637
12.488
14.487
16.645
18.977
21.495
24.215
27.152
30.324
33.75
37.45
41.446
45.762
73.106
113.283
259.057
573.77
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
25
30
40
50
WNL
3
4
5
6
7
8
9
10
#NAHAS59983898
11
12
13
14
15
16
17
18
19
20
25
30
40
50
1%
1
2.01
3.03
4.06
5.101
6.152
7.214
8.286
9.369
10.462
11.567
12.683
13.809
14.947
16.097
17.258
18.43
19.615
20.811
22.019
28.243
34.785
48.886
64.463
12%
1
2.12
3.374
4.779
6.353
8.115
10.089
12.3
14.776
17.549
20.655
24.133
28.029
32.393
37.28
42.753
48.884
55.75
63.44
72.052
133.334
241.333
767.091
2400.018
2.02
3.06
4.122
5.204
6.308
7.434
8.583
9.755
10.95
12.169
13.412
14.68
15.974
17.293
18.639
20.012
21.412
22.841
24.297
32.03
40.568
60.402
84.579
13%
2.03
3.091
4.184
5.309
6.468
7.662
8.892
10.159
11.464
12.808
14.192
15.618
17.086
18.599
20.157
21.762
23.414
25.117
26.87
36.459
47.575
75.401
112.797
14%
1
2.14
3.44
4.921
6.61
8.536
10.73
13.233
16.085
2.13
3.407
4.85
6.48
8.323
10.405
12.757
15.416
18.42
21.814
25.65
29.985
34.883
40.417
46.672
53.739
61.725
70.749
78.969
80.947
91.025
155.62
181.871
293.199
356.787
1013.704 1342.025
3459.507 4994.521
19.337
23.045
27.271
32.089
37.581
43.842
50.98
59.118
68.394
4%
1
2.04
3.122
4.246
5.416
6.633
7.898
9.214
10.583
12.006
13.486
15.026
16.627
18.292
20.024
21.825
23.698
25.645
27.671
29.778
41.646
56.085
95.026
152.667
15%
2.15
3.473
4.993
6.742
8.754
11.067
13.727
16.786
20.304
24.349
29.002
34.352
40.505
47.58
55.717
65.075
75.836
88.212
102.444
212.793
434.745
1779.09
7217.716
1
2.05
3.153
4.31
5.526
6.802
8.142
9.549
11.027
12.578
14.207
15.917
17.713
19.599
21.579
23.657
25.84
28.132
30.539
33.066
47.727
66.439
120.8
209.348
16%
2.16
3.506
5.066
6.877
8.977
11.414
14.24
17.519
21.321
25.733
30.85
36.786
43.672
51.66
60.925
71.673
84.141
98.603
115.38
249.214
530.312
2360.757
10435.649
6%
1
2.06
3.184
4.375
5.637
6.975
8.394
9.897
11.491
13.181
14.972
16.87
18.882
21.015
23.276
25.673
28.213
30.906
33.76
36.786
54.865
79.058
154.762
290.336
17%
2.17
3.539
5.141
7.014
9.207
11.772
14.773
18.285
22.393
27.2
32.824
39.404
47.103
56.11
66.649
78.979
93.406
110.285
130.033
292.105
647.439
3134.522
15089.502
7%
1
2.07
3.215
4.44
5.751
7.153
8.654
10.26
11.978
13.816
15.784
17.888
20.141
22.55
25.129
27.888
30.84
33.999
37.379
40.995
63.249
94.461
199.635
406.529
18%
2.18
3.572
5.215
7.154
9.442
12.142
15.327
19.086
23.521
28.755
34.931
42.219
50.818
60.965
72.939
87.068
103.74
123.414
146.628
342.603
790.948
4163.213
21813.094
19%
2.19
3.606
5.291
7.297
9.683
12.523
15.902
19.923
24.709
30.404
37.18
45.244
54.841
66.261
79.85
96.022
115.266
138.166
165.418
402.042
966.712
5529.829
31515.336
5.985
7.523
9.2
11.028
13.021
15.193
17.56
20.141
22.953
26.019
29.361
33.003
36.974
41.301
46.018
51.16
84.701
136.308
337.882
815.084
20%
1
2.2
3.64
5.368
7.442
9.93
12.916
16.499
20.799
25.959
32.15
39.581
10%
1
2.1
3.31
4.641
6.105
7.716
9.487
11.436
13.579
15.937
18.531
21.384
24.523
27.975
31.772
35.95
40.545
45.599
51.159
57.275
98.347
164.494
442.593
1163.909
25%
2.25
3.813
5.766
8.207
11.259
15.073
19.842
25.802
33.253
42.566
54.208
68.76
86.949
11%
1
2.11
3.342
4.71
6.228
7.913
9.783
11.859
14.164
16.722
19.561
22.713
26.212
30.095
34.405
39.19
44.501
50.396
56.939
64.203
114.413
199.021
581.826
1668.771
30%
2.3
3.99
6.187
9.043
12.756
17.583
23.858
32.015
42.619
56.405
74.327
97.625
127.913
167.286
218.472
285.014
371.518
48.497
59.196
72.035
109.687
87.442
138.109
105.931
173.636
128.117
218.045
154.74
273.556
483.973
186.688
342.945
630.165
471.981
1054.791
2348.803
1181.882
3227.174
8729.985
7343.858
30088.655
120392.883
45497.191 280255.693 1659760.743
Transcribed Image Text:Elaine Romberg prepares her own income tax return each year. A tax preparer would charge her $60 for this service. Over a period of
12 years, how much does Elaine gain from preparing her own tax return? Assume she can earn 5 percent on her savings. Use Exhibit 1-
B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)
Answer is complete but not entirely correct.
Future value of total gain
$1,002.78
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