Jose and Gabriela Perez, of Bridgewater, Virginia, hope to sell their large home for $390,000 and retire
Fantastic news! We've Found the answer you've been seeking!
Question:
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.
Transcribed Image Text:
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
Expert Answer:
Related Book For
Personal Financial Planning
ISBN: 978-1305636613
14th edition
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Posted Date:
Students also viewed these accounting questions
-
How much will $10,000 be worth after 25 years if it earns: a. 6% compounded semiannually? b. 7%compoundedsemiannually? c. 8% compounded semiannually?
-
Jose Ruiz is a single 40-year-old loan officer at large regional bank; he has a 16-year-old son. He has decided to use his annual bonus as a down payment on a new car. One Saturday afternoon in late...
-
For solving Ax = b, consider the stationary Richardson iteration Xk+1=Xk+a (b Ax). For this question, we assume that all eigenvalues of A are real. (a) Find the iteration matrix. (b) Show that if...
-
Data for Barry Computer Co. and its industry averages follow. a. Calculate the indicated ratios for Barry. b. Construct the DuPont equation for both Barry and the industry. c. Outline Barrys...
-
Is the Federal Reserve more effective in fighting recessions or inflations? Explain your answer, if possible, using a flow chart.
-
Juan acquires a new 5-year class asset on March 14, 2016, for $200,000. This is the only asset Juan acquired during the year. He does not elect immediate expensing under 179. He does not claim any...
-
Discuss the reasons for underestimating the impact of project changes on cost and schedule.
-
Terri Harrison, CPA, has discussed various reporting considerations with three of the entities she audits. The three entities presented the following situations and asked how they would affect the...
-
Identify a successful organization. ( you are free to choose a not-for-profit or public-sector agency if you wish.) Reflect on how this organization has succeeded thanks to effective use of...
-
Imagine that you are Magna's new corporate controller and answer the following: 1. Describe Magna's strategy in terms of how it competes for customers. 2. Based on Magna's strategy and the data...
-
Greeks: IBM stock is currently priced at $50. IBM pays no dividend within the next 6 months. Consider a European call and a European put, both struck at $50, on IBM stock, both with maturity 7 = 3...
-
What are the steps for solving the equation log, (4x + 2) = -2? An exponential equation equivalent to log, (4x + 2) = -2 is [Select] Simplifying the side with the exponent gives [Select] The solution...
-
Examine the socio-political dimensions of typographic representation and accessibility, analyzing the ways in which typographic choices can perpetuate or challenge systemic inequalities related to...
-
what manner does the application of typographic hierarchy, through the strategic utilization of font weight, size, and style variations, serve to orchestrate visual prominence and facilitate...
-
At December 31 of the current year, Cart Company has a $16,000 Notes Receivable from a customer. Interest of 5% has accrued for 9 months on the note. What will be reported on the Balance Sheet?
-
Expound upon the intricate interplay between typographic elements such as kerning, leading, and tracking, elucidating how their judicious manipulation augments textual legibility and aesthetic...
-
My friend Steve has a consulting business that generates free cash flows of approximately $140,000/year after-taxes and he expects no growth over the remaining 10 years of his working life (assume he...
-
Suppose that the electrical potential at the point (x, y, z) is E(x, y, z) = x + y - 2z. What is the direction of the acceleration at the point (1,3,2)?
-
QiangGao graduated from college in 2014 and began work as a systems analyst in July 2014. He is preparing to file his income tax return for 2014 and has collected the following financial information...
-
Briefly describe the key characteristics of each of the following forms of interest paying checking accounts: (a) NOW account, (b) MMDA, and (c) MMMF.
-
1. Use a form like Worksheet 11.2 to prepare a complete inventory of Russ's investment holdings. 2. What is your overall assessment of Russ's investment portfolio? Does it appear that his personal...
-
The following covenants are extracted from the indenture of a bond issue. Although the bond due date is 2016, failure to comply with any covenant automatically advances the due date of the loan to...
-
You are engaged in an audit of the financial statements of Pate Corporation for the year ended December 31, 1999. The financial statements and records of Pate Corporation have not been audited by...
-
On May 1, 1999 you were engaged by a committee of shareholders to perform a special audit as of December 31, 1998, of the shareholders' equity of the Major Corporation, whose stock is actively traded...
Study smarter with the SolutionInn App