The expenses associated with sending two children through college prevented Victor and Maria Hernandez from adding substantially to their investment program. Now that their younger son, Joseph, has completed school and is working full time. They would like to build up their investments quickly. Victor is 47 years old and wants to retire early, perhaps by age 60. In addition to the retirement program at his place of employment, Victor believes that their investment portfolio, currently valued at $115,000, will need to triple to $345,000 by his planned retirement time, in 13 years. He and Maria realize that they will have to sacrifice a lot of current spending to save and invest for retirement. What rate of return is needed on the $115,000 portfolio to reach their goal of $345,000 (assuming no additional contributions)? Use Appendix A-1 or visit the Garman/Forgue companion website. Round your answer to the nearest whole number. Round ‘Future Value of a Single Amount’ in intermediate calculations to four decimal places. % Victor and Maria think they will need a total of $610,000 for a retirement financial nest egg to supplement his anticipated small pension from teaching. Therefore, they will need to create an additional sum of about $265,000 through new investments. Assuming an annual return of 7 percent, how much do the Hernandezes need to invest each year to reach their goal of $265,000? Use Appendix A-3 or visit the Garman/Forgue companion website. Round your answer to the nearest dollar. Round ‘Future Value of a Series of Equal Amounts’ in intermediate calculations to four decimal places. $ If they assume a 6 percent annual return, how much do the Hernandezes need to invest each year to reach their goal of $265,000? Use Appendix A-3 or visit the Garman/Forgue companion website. Round your answer to the nearest dollar. Round ‘Future Value of a Series of Equal Amounts’ in intermediate calculations to four decimal places
The expenses associated with sending two children through college prevented Victor and Maria Hernandez from adding substantially to their investment program. Now that their younger son, Joseph, has completed school and is working full time. They would like to build up their investments quickly. Victor is 47 years old and wants to retire early, perhaps by age 60. In addition to the retirement program at his place of employment, Victor believes that their investment portfolio, currently valued at $115,000, will need to triple to $345,000 by his planned retirement time, in 13 years. He and Maria realize that they will have to sacrifice a lot of current spending to save and invest for retirement.
-
What
rate of return is needed on the $115,000 portfolio to reach their goal of $345,000 (assuming no additional contributions)? Use Appendix A-1 or visit the Garman/Forgue companion website. Round your answer to the nearest whole number. Round ‘Future Value of a Single Amount’ in intermediate calculations to four decimal places.%
-
Victor and Maria think they will need a total of $610,000 for a retirement financial nest egg to supplement his anticipated small pension from teaching. Therefore, they will need to create an additional sum of about $265,000 through new investments. Assuming an annual return of 7 percent, how much do the Hernandezes need to invest each year to reach their goal of $265,000? Use Appendix A-3 or visit the Garman/Forgue companion website. Round your answer to the nearest dollar. Round ‘Future Value of a Series of Equal Amounts’ in intermediate calculations to four decimal places.
$
-
If they assume a 6 percent annual return, how much do the Hernandezes need to invest each year to reach their goal of $265,000? Use Appendix A-3 or visit the Garman/Forgue companion website. Round your answer to the nearest dollar. Round ‘Future Value of a Series of Equal Amounts’ in intermediate calculations to four decimal places.
![Appendix A-3
1%
1.0000 1.0000
2.0100 2.0200
n
16% 17%
18%
1.0000
1.0000
4% 5%
1.0000 1.0000 1.0000
2.0300 2.0400 2.0500
3.1216 3.1525
4.2465 4.3101
11%
1.0000
2.1100
3.3421
13% 14% 15%
1.0000
2.1300
3.4069
1.0000
2.1400
1.0000
2.1500
1.0000
2.1700
2.1900
3 3.0301 3.0604
3.3744
3.4396
1.0000
2.1600
3.5056
5.0665
6.8771
3.5389
3.4725
4.9934
3.6061
2.2000
3.6400
5.3680
4.7097
4.7793
4.8498
5.2913
4.9211
6.6101
6.1051
6.2278
6.3528
7.4416
4 4.0604 4.1216
5 5.1010 5.2040
6 6.1520 6.3081
7 7.2135 7.4343
8 8.2857 8.5830
3.0909
4.1836
5.3091
6.4684 6.6330
7.6625 7,8983
8.8923 9.2142
7.7156
9.9299
12.9159
1.0000
2.1800
3.5724
5.2154
7.1542 7.2966
9.4420 9.6830
12.1415 12.5227
15.3270 15.9020
19.0859 19.9234
23.5213 24.7089
28.7551 30.4035
34.9311 37.1802
45.2445
54.8409
16.4991
20.7989
25.9587
32.1504
39.5805
48.4966
13
14
59.1959
15
60.9653
66.2607
72.0351
6% 7% 8% 9% 10%
1.0000 1.0000 1.0000 1.0000 1.0000
2.0600 2.0700 2.0800 2.0900 2.1000
3.1836 3.2149 3.2464 3.2781 3.3100
4.3746
4.4399 4.5061 4.5731 4.64 10
5.1405
5.4163 5.5256 5.6371 5.7507 5.8666 5.9847
6.4803
6.7424
7.0144
6.8019
6.9753
7.1533 7.3359 7.5233
7.9129 8.1152 8.3227 8.5355 8.7537 8.9775 9.2068
8.1420 8.3938 8.6540 8.9228 9.2004 9.4872 9.7833 10.0890 10.4047 10.7305 11.0668 11.4139 11.7720
9.5491 9.8975 10.2598 10.6366 11.0285 11.4359 11.8594 12.2997 12.7573 13.2328 13.7268 14.2401 14.7733
9 9.3685 9.7546 10.1591 10.5828 11.0266 11.4913 11.9780 12.4876 13.0210 13.5795 14.1640 14.7757 15.4157 16.0853 16.7858
17.5185 18.2847
10 10.4622 10.9497 11.4639 12.0061 12.5779 13.1808 13.8164 14.4866 15.1929 15.9374 16.7220 17.5487 18.4197 19.3373 20.3037 21.3215 22.3931
11 11.5668 12.1687 12.8078 13.4864 14.2068 14.9716 15.7836 16.6455 17.5603 18.5312 19.5614 20.6546 21.8143 23.0445 24.3493 25.7329 27.1999
12 12.6825 13.4121 14.1920 15.0258 15.9171 16.8699 17.8885 18.9771 20.1407 21.3843 22.7132 24.1331 25.6502 27.2707 29.0017 30.8502 32.8239
13.8093 14.6803 15.6178 16.6268 17.7130 18.8821 20.1406 21.4953 22.9534 24.5227 26.2116 28.0291 29.9847 32.0887 34.3519 36.7862 39.4040 42.2187
14.9474 15.9739 17.0863 18.2919 19.5986 21.0151 22.5505 24.2149 26.0192 27.9750 30.0949 32.3926 34.8827 37.5811 40.5047 43.67 20 47.1027 50.8180
16.0969 17.2934 18.5989 20.0236 21.5786 23.2760 25.1290 27.1521 29.3609 31.7725 34.4054 37.2797 40.4175 43.8424 47.5804 51.6595 56.1101
16 17.2579 18.6393 20.1569 21.8245 23.6575 25.6725 27.8881 30.3243 33.0034 35.9497 39.1899 42.7533 46.6717 50.9804 55.7175 60.9250 66.6488
17 18.4304 20.0121 21.7616 23.6975 25.8404 28.2129 30.8402 33.7502 36.9737 40.5447 44.5008 48.8837 53.7391 59.1176 65.0751 71.6730 78.9791 87.0680 96.0217 105.9306
18 19.6147 21.4123 23.4144 25.6454 28.1324 30.9057 33.9990 37.4502 41.3013 45.5992 50.3959 55.7497 61.7251 68.3941 75.8364 84.1407 93.4056 103.7403 115.2659 128.1167
19 20.8109 22.8406 25.1169 27.6712 30.5390 33.7600 37.3790 41.4463 46.0185 51.1591 56.9395 63.4397 70.7494 78.9692 88.2118 98.6032 110.2846 123.4135 138.1664 154.7400
22.0190 24.2974 26.8704 29.7781 33.0660 36.7856 40.9955
72.0524 80.9468 91.0249 102.4436 115.3797 130.0329 146.6280 165.4180 186.6880
23.2392 25.7833 28.6765 31.9692 35.7193 39.9927 44.8652 50.4229 56.7645
81.6987 92.4699 104.7684 118.8101 134.8405 153.1385 174.0210 197.8474 225.0256
30.5368
38.5052 43.3923 49.0057 55.4568 62.8733
81.2143 92.5026 105.4910 120.4360 137.63 16 157.4150 180.1721 206.3448 236.4384 271.0307
41.4305 46.9958 53.4361 60.8933 69.53 19
91.1479 104.6029 120.2048 138.2970 159.2764 183.6014 211.8013 244.4868 282.3618 326.2368
39.0826 44.5020 50.8156 58.1767 66.7648 76.7898
102.1741 118.1552 136.8315 158.6586 184.1678 213.9776 248.8075 289.4945 337.0105 392.4842
41.6459
47.7271 54.8645 63.2490 73.1059 84.7009 98.3471 114.4133 133.3339 155.6196 181.8708 212.7930 249.2140 292.1048 342.6035 402,0424 471.9811
29.5256 33.6709 38.5530 44.3117 51.1135 59.1564 68.6765 79.9544 93.3240 109.18 18 127.9988 150.3339 176.8501 208.3327 245.7120 290.0883 342.7626 405.2721 479.4305 567.3773
27 30.8209 35.3443 40.7096 47.0842 54.6691 63.7058 74.4838
87.3508 102.7231 121.0999 143.0786 169.3740 200.8406 238.4993 283.5688 337.5024 402.0323 479.2211 571.5223 681.8527
28 32.1291 37.0512 42.9309 49.9676 58.4026 68.5281 80.6977 95.3388 112.9682 134.2099 159.8173 190.6989 227.9499 272.8892 327.1041 392.5027 471.3778 566.4808 681.1116 819.2233
29 33.4504 38.7922 45.2188 52.9663 62.3227 73.6398 87.3465 103.9659 124.1354 148.6309 178.3972 214.5827 258.5834 312.0937 377.1697 456.3032 552.5120 669.4474 811.5228 984.0679
30 34.7849 40.5681 47.5754 56.0849 66.4389 79.0582 94.4608 113.2832 136.3075 164.4940 199.0209 241.3327 293.1992 356.7868 434.7451 530.3117 647.4390 790.9479 966.7121 1181.882
40 48.8864 60.4020 75.4013 95.0255 120.7998 154.7620 199.6351 259.0565 337.8824 442.5925 581.8260 767.0914 1013.704 1342.025 1779.090 2360.757 3134.522 4163.212 5529.829 7343.856
50 64.4632 84.5794 112.7969 152.6671 209.3480 290.3359 406.5289 573.7701 815.0834 1163.908 1668.771 2400.018 3459.507 4994.522 7217.714 10435.65 15089.50 21813.09 31515.33
72.9390
79.8502
87.4421
20
45.7620
51.1601
57.2750
64.2028
21
64.00 25
72.2651
22
24.4716 27.2990
34.2480
23 25.7163 28.8450
36.6179
32.4529
34.4265
71.4027
79.5430
88.4973
24 26.9735 30.4219
25 28.2432 32.0303 36.4593
26
45497.17
1
2
Future Value of a Series of Equal Amounts (an Annuity of $1 Paid at the End of Each Period)
(Used to Compute the Compounded Future Value of a Stream of Income Payments)
2% 3%
12%
1.0000
2.1200
19%
20%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feed8f33c-5e0d-47f3-bbf2-72eddaf64593%2F2a523456-a974-46d8-95e5-480071dd138a%2Fvfaoxtd_processed.jpeg&w=3840&q=75)
![Appendix A-1
1% 2% 3%
1.0100 1.0200 1.0300
2 1.0201 1.0404 1.0609
1
1.1700
1.1800
1.1100
1.2321
1.3689
1.4161 1.4400
1.3924
1.6430
3
1.0303 1.0612 1.0927
1.3676
1.6016
1.7280
1.6852
2.0053
4
11% 12% 13% 14% 15% 16% 17% 18% 19% 20%
1.1300 1.1400 1.1500 1.1600
1.1900 1.2000
1.2769 1.2996 1.3225 1.3456
1.4429 1.4815 1.5209 1.5609
1.8106
2.1003
2.4364
2.8262
3.2784
1.0406 1.0824 1.1255
1.9388
2.0736
1.8739
2.1924
2.5652
2.2878
2.4883
2.3864
2.8398
6 1.0615 1.1262
2.6996
3.0012
3.3793
3.1855
3.7589
2.9860
3.5832
4.2998
2.1436
3.5115
4.0214
4.7854
3.8030
4.1084
4.4355
5.1598
5.2338
5.6947
6.1917
4.8068
5.6240
6.1759
6.7767
7.4301
6.5801
8.0642
8.9161
7.6987
4% 5% 6% 7% 8% 9% 10%
1.0400 1.0500 1.0600 1.0700 1.0800 1.0900
1.1200
1.0816 1.1025 1.1236 1.1449 1.1664 1.1881
1.2544
1.1249 1.1576 1.1910 1.2250 1.2597 1.2950
1.4049
1.1699 1.2155 1.2625 1.3108 1.3605 1.4116
1.5735 1.6305 1.6890 1.7490
5 1.0510 1.1041 1.1593 1.2167 1.2763 1.3382 1.4026 1.4693 1.5386
1.7623 1.8424 1.9254 2.0114
1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771
1.9738 2.0820 2.1950 2.3131
7 1.0721 1.1487 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280
2.2107 2.3526 2.50 23 2.6600
8 1.0829 1.1717 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926
2.4760 2.6584 2.8526 3.0590
9 1.0937 1.1951 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579
2.7731 3.0040 3.2519 3.5179
10 1.1046 1.2190 1.3439 1.4802 1.6289 1.7908 1.9672
2.1589 2.3674 2.5937
3.1058 3.3946 3.7072 4.0456 4.4114
11 1.1157 1.2434 1.3842 1.5395 1.7103 1.8983 2.1049 2.3316 2.5804 2.8531
3.4785 3.8359 4.2262 4.6524 5.1173
12 1.1268 1.2682 1.4258 1.6010 1.7959 2.0122 2.2522 2.5182 2.8127 3.1384
3.8960 4.3345 4.8179 5.3503 5.9360
7.2876
13 1.1381 1.2936 1.4685 1.6651 1.8856 2.1329 2.4098 2.7196 3.0658 3.4523
4.3635 4.8980 5.4924 6.1528 6.8858
8.5994 9.5964 10.6993
14 1.1495 1.3195 1.5126 1.7317 1.9799
2.2609 2.5785 2.9372 3.3417 3.7975
4.8871 5.5348 6.2613 7.0757 7.9875 9.0075 10.1472 11.4198 12.8392
15 1.1610 1.3459 1.5580 1.8009 2.0789
2.3966 2.7590 3.1722 3.6425 4.1772
5.4736 6.2543 7.1379 8.1371 9.2655 10.5387 11.9737 13.5895 15.4070
1.1726 1.3728 1.6047 1.8730 2.1829 2.5404 2.9522 3.4259 3.9703 4.5950
6.1304 7.0673 8.1372 9.3576 10.7480 12.3303 14.1290 16.1715 18.4884
1.1843 1.4002 1.6528 1.9479 2.29 20 2.6928 3.1588 3.7000 4.3276 5.0545
6.8660 7.9861 9.2765 10.7613 12.4677 14.4265 16.6722 19.2441
22.1861
1.1961 1.4282 1.7024 2.0258 2.4066 2.8543 3.3799 3.9960 4.7171
7.6900 9.0243 10.5752 12.3755 14.4625 16.8790 19.6733 22.9005 26.6233
1.2081 1.4568 1.7535 2.1068 2.5270 3.0256 3.6165 4.3157 5.1417
8.6128 10.1974 12.0557 14.2318 16.7765 19.7484 23.2144 27.2516
1.2202 1.4859 1.8061 2.1911 2.6533 3.2071 3.8697 4.6610 5.6044
9.6463 11.5231 13.7435 16.3665 19.4608 23.1056 27.3930 32.4294
1.2324 1.5157 1.8603 2.2788 2.7860 3.3996
4.1406 5.0338 6.1088
10.8038 13.0211 15.6676 18.8215 22.5745 27.0336 32.3238 38.5910
22 1.2447 1.5460 1.9161 2.3699 2.9253 3.6035 4.4304 5.4365 6.6586
12.1003 14.7138 17.8610 21.6447 26.1864 31.6293 38.1421 45.9233
23 1.2572 1.5769 1.9736 2.4647 3.0715 3.8197 4.7405 5.8715 7.2579 8.9543 11.0263 13.5523 16.6266 20.3616 24.8915 30.3762 37.0062 45.0076 54.6487
24 1.2697 1.6084 2.0328 2.5633 3.2251 4.0489 5.0724 6.3412 7.9111 9.8497 12.2392 15.1786 18.7881 23.2122 28.6252 35.2364 43.2973 53.1090 65.03 20 79.4968
25 1.2824 1.6406 2.0938 2.6658 3.3864 4.2919 5.4274 6.8485 8.6231 10.8347 13.5855 17.0001 21.2305 26.4619 32.9190 40.8742 50.6578 62.6686 77.3881 95.3962
1.2953 1.6734 2.1566 2.7725 3.5557 4.5494 5.8074 7.3964 9.3992 11.9182 15.0799 19.0401 23.9905 30.1666 37.8568 47.4141 59.2697 73.9490 92.0918 114.4755
1.3082 1.7069 2.2213 2.8834 3.7335 4.8223 6.2139 7.9881 10.2451 13.1100 16.7386 21.3249 27.1093 34.3899 43.5353 55.0004 69.3455 87.2598 109.5893 137.3706
28 1.3213 1.7410 2.2879 2.9987 3.9201 5.1117 6.6488
8.6271 11.1671 14.4210 18.5799 23.8839 30.6335 39.2045 50.0656 63.8004 81.1342 102.9666 130.4112 164.8447
29 1.3345 1.7758 2.3566 3.1187 4.1161 5.4184 7.1143 9.3173 12.1722 15.8631 20.6237 26.7499 34.6158 44.6931 57.5755 74.0085 94.9271 121.5005 155.1893 197.8136
30 1.3478 1.8114 2.4273 3.2434 4.3219 5.7435 7.6123 10.0627 13.2677 17.4494 22.8923 29.9599 39.1159 50.9502 66.2118 85.8499 111.0647 143.3706 184.6753 237.3763
40 1.4889 2.2080 3.2620 4.8010 7.0400 10.2857 14.9745 21.7245 31.4094 45.2593 65.0009 93.0510 132.7816 188.8835 267.8635 378.7212 533.8687 750.3783
1.6446 2.6916 4.3839 7.1067 11.4674 18.4202 29.4570 46.9016 74.3575
184.5648 289.0022 450.7359 700.2330 1083.657 1670.704 2566.215 3927.357
16
17
18
5.5599
6.1159
19
31.9480
6.7275
20
21
7.4002
38.3376
46.0051
55.2061
8.1403
9.9336
66.2474
26
27
1051.668 1469.772
50
117.3909
5988.914 9100.438
n
Future Value of a Single Amount ($1 at the End of n Periods) (Used to Compute the Compounded
Future Value of a Known Lump Sum)
1.1000
1.2100
1.3310
1.4641
1.6105
1.7716
1.9487
1.5181
1.6851
1.8704
2.0762
2.3045
2.5580
2.8394
3.1518
3.4985
3.8833
4.3104
4.7846
5.3109
5.8951
6.5436
7.2633
8.0623
8.9492](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feed8f33c-5e0d-47f3-bbf2-72eddaf64593%2F2a523456-a974-46d8-95e5-480071dd138a%2Fzml9bg_processed.jpeg&w=3840&q=75)
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