(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 $4,000 each year. What is the accumulated future value of those amounts over 20 years if the annual earnings were invested regularly and provided a 5 percent return each year?
(b) What would Victor and Maria's annual income be after 20 years if they both received an average 3 percent raise over their current $85,000 salary ($53,000 + $32,000) every year?
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 $53,000 annually. Maria works as a medical records assistant earning $32,000.