Jose and Gabriela Perez, of Bridgewater, Virginia, hope to sell their large home for $390,000 and retire to a smaller residence valued at $153,000. After they sell the property, they plan to invest the $207,000 in equity remaining after selling expenses and earn a 7 percent after-tax return. Approximately how much will this nest egg be worth in five years when they retire? Use Appendix A-1 or the Garman/Forgue companion website to solve for the answer. Round Future Value of a Single Amount in intermediate calculations to four decimal places. Round your answer to the nearest dollar.

 

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Appendix A-1 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% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 1 1.0100 1.0200 1.0300 1.0400 1.0500 1.0600 1.0700 1.0800 1.0900 1.1000 1.1100 1.1200 1.1300 1.1400 1.1500 1.1600 1.1700 1.1800 1.1900 1.2000 2 1.0201 1.0404 1.0609 1.0816 1.1025 1.1236 1.1449 1.1664 1.1881 1.2100 1.2321 1.2544 1.2769 1.2996 13225 1.3456 1.3689 1.3924 1.4161 1.4400 1.0303 1.0612 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.33 10 1.3676 1.4049 1.4429 1.4815 1.5209 1.5609 1.6016 1.6430 1.6852 1.7280 1.0406 1.0824 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.5181 1.5735 1.6305 1.6890 1.7490 1.8106 1.8739 1.9388 2.0053 2.0736 5 1.0510 1.1041 1.1593 1.2167 1.2763 13382 14026 1.4693 1.5386 1.6105 1.6851 1.7623 1.8424 1.9254 2.0114 2.1003 2.1924 2.2878 2.3864 2.4883 6 1.0615 1.1262 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.8704 1.9738 2.0820 2.1950 2.3131 2.4364 2.5652 2.6996 2.8398 2.9860 7 1.0721 1.1487 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 18280 1.9487 2.0762 2.2107 2.3526 2.5023 2.6600 2.8262 3.0012 3.1855 3.3793 3.5832 8 1.0829 1.1717 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.3045 2.4760 2.6584 2.85 26 3.0590 3.2784 3.5115 3.7589 4.0214 4.2998 9 1.0937 1.1951 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.5580 2.7731 3.0040 3.2519 3.5179 3.8030 4.1084 4.4355 4.7854 5.1598 10 1.1046 1.2190 13439 1.4802 1.6289 1.7908 1.9672 2.1589 23674 2.5937 2.8394 3.1058 3.3946 3.7072 4.0456 4.4114 4.8068 5.2338 5.6947 6.1917 11 1.1157 1.2434 1.3842 1.5395 1.7103 1.8983 2.1049 2.3316 2.5804 2.8531 3.1518 3.4785 3.8359 4.2262 4.6524 5.1173 5.6240 6.1759 6.7767 7.4301 12 1.1268 1.2682 1.4258 1.60 10 1.7959 2.0122 2.2522 2.5182 2.8127 3.1384 3.4985 3.8960 4.3345 4.8179 5.3503 5.9360 6.5801 7.2876 8.0642 8.9161 13 1.1381 1.2936 1.4685 1.6651 1.8856 2.1329 2.4098 2.7196 3.0658 3.4523 3.8833 4.3635 4.8980 5.4924 6.1528 6.88 58 7.6987 8.5994 9.5964 10.6993 14 1.1495 1.3195 1.5126 1.7317 1.9799 2.2609 2.5785 2.9372 33417 3.7975 4.3104 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 4.7846 5.4736 6.2543 7.1379 8.1371 9.2655 10.5387 11.9737 13.5895 15.4070 16 1.1726 1.3728 1.6047 1.8730 2.1829 2.5404 2.9522 34259 3.9703 4.5950 5.3109 6.1304 7.0673 8.1372 9.3576 10.7480 12.3303 14.1290 16.1715 18.4884 17 1.1843 1.4002 1.6528 1.9479 2.2920 2.6928 3.1588 3.7000 4.3276 5.0545 5.8951 6.8660 7.9861 9.2765 10.7613 12.4677 14.4265 16.6722 19.2441 22.1861 18 1.1961 1.4282 1.7024 2.02 58 2.4066 2.8543 3.3799 3.9960 4.7171 5.5599 6.5436 7.6900 9.0243 10.5752 12.3755 14.4625 16.8790 19.6733 22.9005 26.6233 19 1.2081 1.4568 1.7535 2.1068 2.5270 3.0256 3.6165 43157 5.1417 6.1159 7.2633 8.61 28 10.1974 12.0557 14.2318 16.7765 19.7484 23.2144 27.25 16 31.9480 20 1.2202 1.4859 1.8061 2.1911 2.6533 3.2071 3.8697 4.6610 5.6044 6.7275 8.0623 9.6463 11.5231 13.7435 16.3665 19.4608 23.1056 27.3930 32.4294 38.3376 21 1.2324 1.5157 1.8603 2.2788 2.7860 33996 4.1406 5.0338 6.1088 7.4002 8.9492 10.8038 13.0211 15.66 76 18.8215 22.5745 27.0336 32.3238 38.59 10 46.0051 22 1.2447 1.5460 1.9161 2.3699 2.9253 3.6035 4.4304 5.4365 6.6586 8.1403 9.9336 12.1003 14.7138 17.86 10 21.6447 26.1864 31.6293 38.1421 45.9233 55.2061 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 20.36 16 24.8915 30.3762 37.0062 45.0076 54.6487 66.2474 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 26 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 27 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 14.42 10 18.5799 23.8839 30.6335 39.2045 50.0656 63.8004 81.1342 102.9666 130.4112 164.8447 29 13345 1.7758 23566 3.1187 4.1161 5.4184 7.1143 93173 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 13478 1.8114 24273 3.2434 4.32 19 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 4.80 10 7.0400 10.2857 14.9745 21.7245 31.4094 45.2593 65.0009 93.05 10 132.7816 188.8835 267.8635 378.7212 533.8687 750.3783 1051.668 1469.772 50 1.6446 2.6916 4.3839 7.1067 11.4674 18.4202 29.4570 46.9016 743575 117.3909 184.5648 289.0022 450.7359 700.2330 1083.657 1670.704 2566.215 3927.357 5988.914 9100.438 Appendix A-1 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% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 1 1.0100 1.0200 1.0300 1.0400 1.0500 1.0600 1.0700 1.0800 1.0900 1.1000 1.1100 1.1200 1.1300 1.1400 1.1500 1.1600 1.1700 1.1800 1.1900 1.2000 2 1.0201 1.0404 1.0609 1.0816 1.1025 1.1236 1.1449 1.1664 1.1881 1.2100 1.2321 1.2544 1.2769 1.2996 13225 1.3456 1.3689 1.3924 1.4161 1.4400 1.0303 1.0612 1.0927 1.1249 1.1576 1.1910 1.2250 1.2597 1.2950 1.33 10 1.3676 1.4049 1.4429 1.4815 1.5209 1.5609 1.6016 1.6430 1.6852 1.7280 1.0406 1.0824 1.1255 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.4641 1.5181 1.5735 1.6305 1.6890 1.7490 1.8106 1.8739 1.9388 2.0053 2.0736 5 1.0510 1.1041 1.1593 1.2167 1.2763 13382 14026 1.4693 1.5386 1.6105 1.6851 1.7623 1.8424 1.9254 2.0114 2.1003 2.1924 2.2878 2.3864 2.4883 6 1.0615 1.1262 1.1941 1.2653 1.3401 1.4185 1.5007 1.5869 1.6771 1.7716 1.8704 1.9738 2.0820 2.1950 2.3131 2.4364 2.5652 2.6996 2.8398 2.9860 7 1.0721 1.1487 1.2299 1.3159 1.4071 1.5036 1.6058 1.7138 18280 1.9487 2.0762 2.2107 2.3526 2.5023 2.6600 2.8262 3.0012 3.1855 3.3793 3.5832 8 1.0829 1.1717 1.2668 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 2.1436 2.3045 2.4760 2.6584 2.85 26 3.0590 3.2784 3.5115 3.7589 4.0214 4.2998 9 1.0937 1.1951 1.3048 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 2.3579 2.5580 2.7731 3.0040 3.2519 3.5179 3.8030 4.1084 4.4355 4.7854 5.1598 10 1.1046 1.2190 13439 1.4802 1.6289 1.7908 1.9672 2.1589 23674 2.5937 2.8394 3.1058 3.3946 3.7072 4.0456 4.4114 4.8068 5.2338 5.6947 6.1917 11 1.1157 1.2434 1.3842 1.5395 1.7103 1.8983 2.1049 2.3316 2.5804 2.8531 3.1518 3.4785 3.8359 4.2262 4.6524 5.1173 5.6240 6.1759 6.7767 7.4301 12 1.1268 1.2682 1.4258 1.60 10 1.7959 2.0122 2.2522 2.5182 2.8127 3.1384 3.4985 3.8960 4.3345 4.8179 5.3503 5.9360 6.5801 7.2876 8.0642 8.9161 13 1.1381 1.2936 1.4685 1.6651 1.8856 2.1329 2.4098 2.7196 3.0658 3.4523 3.8833 4.3635 4.8980 5.4924 6.1528 6.88 58 7.6987 8.5994 9.5964 10.6993 14 1.1495 1.3195 1.5126 1.7317 1.9799 2.2609 2.5785 2.9372 33417 3.7975 4.3104 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 4.7846 5.4736 6.2543 7.1379 8.1371 9.2655 10.5387 11.9737 13.5895 15.4070 16 1.1726 1.3728 1.6047 1.8730 2.1829 2.5404 2.9522 34259 3.9703 4.5950 5.3109 6.1304 7.0673 8.1372 9.3576 10.7480 12.3303 14.1290 16.1715 18.4884 17 1.1843 1.4002 1.6528 1.9479 2.2920 2.6928 3.1588 3.7000 4.3276 5.0545 5.8951 6.8660 7.9861 9.2765 10.7613 12.4677 14.4265 16.6722 19.2441 22.1861 18 1.1961 1.4282 1.7024 2.02 58 2.4066 2.8543 3.3799 3.9960 4.7171 5.5599 6.5436 7.6900 9.0243 10.5752 12.3755 14.4625 16.8790 19.6733 22.9005 26.6233 19 1.2081 1.4568 1.7535 2.1068 2.5270 3.0256 3.6165 43157 5.1417 6.1159 7.2633 8.61 28 10.1974 12.0557 14.2318 16.7765 19.7484 23.2144 27.25 16 31.9480 20 1.2202 1.4859 1.8061 2.1911 2.6533 3.2071 3.8697 4.6610 5.6044 6.7275 8.0623 9.6463 11.5231 13.7435 16.3665 19.4608 23.1056 27.3930 32.4294 38.3376 21 1.2324 1.5157 1.8603 2.2788 2.7860 33996 4.1406 5.0338 6.1088 7.4002 8.9492 10.8038 13.0211 15.66 76 18.8215 22.5745 27.0336 32.3238 38.59 10 46.0051 22 1.2447 1.5460 1.9161 2.3699 2.9253 3.6035 4.4304 5.4365 6.6586 8.1403 9.9336 12.1003 14.7138 17.86 10 21.6447 26.1864 31.6293 38.1421 45.9233 55.2061 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 20.36 16 24.8915 30.3762 37.0062 45.0076 54.6487 66.2474 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 26 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 27 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 14.42 10 18.5799 23.8839 30.6335 39.2045 50.0656 63.8004 81.1342 102.9666 130.4112 164.8447 29 13345 1.7758 23566 3.1187 4.1161 5.4184 7.1143 93173 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 13478 1.8114 24273 3.2434 4.32 19 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 4.80 10 7.0400 10.2857 14.9745 21.7245 31.4094 45.2593 65.0009 93.05 10 132.7816 188.8835 267.8635 378.7212 533.8687 750.3783 1051.668 1469.772 50 1.6446 2.6916 4.3839 7.1067 11.4674 18.4202 29.4570 46.9016 743575 117.3909 184.5648 289.0022 450.7359 700.2330 1083.657 1670.704 2566.215 3927.357 5988.914 9100.438

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