In planning for your retirement, you expect to save $5000 in year 1, $6000 in year 2, and amounts increasing by $1000 each year through year 20. If your investments earn 10% per year, the amount you will have at the end of year 20 is closest to: Use FT=FA+FG=> FT=A1*(F/A factor, i, n)+G*(F/G factor, i, n); for F/G factor, you should apply the following formula: (1+i)"- (1+ ni) F/G factor = O a) $242,568 b) $355,407 c) $597,975 d) $659,126
In planning for your retirement, you expect to save $5000 in year 1, $6000 in year 2, and amounts increasing by $1000 each year through year 20. If your investments earn 10% per year, the amount you will have at the end of year 20 is closest to: Use FT=FA+FG=> FT=A1*(F/A factor, i, n)+G*(F/G factor, i, n); for F/G factor, you should apply the following formula: (1+i)"- (1+ ni) F/G factor = O a) $242,568 b) $355,407 c) $597,975 d) $659,126
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:In planning for your retirement, you expect to save $5000 in year 1, $6000 in year 2,
and amounts increasing by $1000 each year through year 20. If your investments
earn 10% per year, the amount you will have at the end of year 20 is closest to:
Use FT=FA+FG=> FT=A1*(F/A factor, i, n)+G*(F/G factor, i, n); for F/G factor, you
should apply the following formula:
(1+i)"- (1+ni)
F/G factor:
%3D
22
O a) $242,568
O b) $355,407
c) $597,975
d) $659,126
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