You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly

Question

You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $30,000 at the end of each year for the next 10 years. You expect to earn 9 percent each year.

You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $30,000 at the end of each year for the next 10 years. You expect to earn 9 percent each year.

    Required: 1. Determine how much you will have saved after 10 years. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answer to 2 decimal places.)      2. Determine the amount saved if you were able to deposit $34,000 each year. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answer to 2 decimal places.)          3. Determine the amount saved if you deposit $30,000 each year, but with 11 percent interest. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answer to 2 decimal places.)

Explanation / Answer

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year opening interest investment balance     1.00                   -                   -   30000     30,000.00     2.00     30,000.00     2,700.00 30000     62,700.00     3.00     62,700.00     5,643.00 30000     98,343.00     4.00     98,343.00     8,850.87 30000 137,193.87     5.00 137,193.87 12,347.45 30000 179,541.32     6.00 179,541.32 16,158.72 30000 225,700.04     7.00 225,700.04 20,313.00 30000 276,013.04     8.00 276,013.04 24,841.17 30000 330,854.21     9.00 330,854.21 29,776.88 30000 390,631.09 10.00 390,631.09 35,156.80 30000 455,787.89

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