You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $30,700 at the end of each year for the next 10 years. You expec to earn 10 percent each year. Required: 1. Determine how much you will have saved after 10 years. 2. Determine the amount saved if you were able to deposit $33,200 each year. 3. Determine the amount saved if you deposit $30,700 each year, but with 12 percent interest. (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided
You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $30,700 at the end of each year for the next 10 years. You expec to earn 10 percent each year. Required: 1. Determine how much you will have saved after 10 years. 2. Determine the amount saved if you were able to deposit $33,200 each year. 3. Determine the amount saved if you deposit $30,700 each year, but with 12 percent interest. (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided
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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Transcribed Image Text:You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million
dollars. Your plan is to deposit $30,700 at the end of each year for the next 10 years. You expect
to earn 10 percent each year.
Required:
1. Determine how much you will have saved after 10 years.
2. Determine the amount saved if you were able to deposit $33,200 each year.
3. Determine the amount saved if you deposit $30,700 each year, but with 12 percent interest.
(Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.)
Note: Use appropriate factor(s) from the tables provided
X Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3
Determine how much you will have saved after 10 years.
Note: Round your final answer to the nearest whole dollar.
Balance in the Savings Account
$
490,483
< Required 1
Required 2 >
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