Victor and Maria Hernandez Look at Future Income Throughout this book, we will present a continuing narrative about Victor and Maria Hernandez. Following is a brief description of the lives of thi couple. Victor and Maria, both in their late 30s, have two children: Jacob, age 13, and Nicholas, age 15. Victor has had a long sales career with a retail appliance store in Fargo, North Dakota earning $52,000 annually. Maria works as a medical records assistant earning $30,000. a. Victor and Maria regularly buy and sell a number of items on eBay, Craig's List, and through the free community newspaper, from which they earn about $3,000 each year. What is the accumulated future value of those annual amounts over 18 years if the annual earnings were invested regularly and provided a 4 percent return each year? (Hint: Use Appendix A-3.) Round your answer to nearest dollar. Round Future Value of Series of Equal Amounts in intermediate calculations to four decimal places %24 b. What would Victor and Maria's annual income be after 18 years if they both received an average 5 percent raise over their current $82,000 salary ($52,000 + $30,000) every year? (Hint: Use Appendix A-1.) Round your answer to nearest dollar. Round Future Value of a Single Amount in intermediate calculations to four decimal places. $
Victor and Maria Hernandez Look at Future Income Throughout this book, we will present a continuing narrative about Victor and Maria Hernandez. Following is a brief description of the lives of thi couple. Victor and Maria, both in their late 30s, have two children: Jacob, age 13, and Nicholas, age 15. Victor has had a long sales career with a retail appliance store in Fargo, North Dakota earning $52,000 annually. Maria works as a medical records assistant earning $30,000. a. Victor and Maria regularly buy and sell a number of items on eBay, Craig's List, and through the free community newspaper, from which they earn about $3,000 each year. What is the accumulated future value of those annual amounts over 18 years if the annual earnings were invested regularly and provided a 4 percent return each year? (Hint: Use Appendix A-3.) Round your answer to nearest dollar. Round Future Value of Series of Equal Amounts in intermediate calculations to four decimal places %24 b. What would Victor and Maria's annual income be after 18 years if they both received an average 5 percent raise over their current $82,000 salary ($52,000 + $30,000) every year? (Hint: Use Appendix A-1.) Round your answer to nearest dollar. Round Future Value of a Single Amount in intermediate calculations to four decimal places. $
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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How to get the future value
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Financial planning case 1-2
Victor and Maria Hernandez Look at Future Income
Throughout this book, we will present a continuing narrative about Victor and Maria Hernandez. Following is a brief description of the lives of this
couple.
Victor and Maria, both in their late 30s, have two children: Jacob, age 13, and Nicholas, age 15. Victor has had a long sales career with a retail
appliance store in Fargo, North Dakota earning $52,000 annually. Maria works as a medical records assistant earning $30,000.
a. Victor and Maria regularly buy and sell a number of items on eBay, Craig's List, and through the free community newspaper, from which they
earn about $3,000 each year. What is the accumulated future value of those annual amounts over 18 years if the annual earnings were
invested regularly and provided a 4 percent return each year? (Hint: Use Appendix A-3.) Round your answer to nearest dollar. Round Future
Value of Series of Equal Amounts in intermediate calculations to four decimal places
24
b. What would Victor and Maria's annual income be after 18 years if they both received an average 5 percent raise over their current $82,000
salary ($52,000 + $30,000) every year? (Hint: Use Appendix A-1.) Round your answer to nearest dollar. Round Future Value of a Single
Amount in intermediate calculations to four decimal places.
$
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