Wagner Family The Wagners have saved $5,000 towards their goal to have $50,000 for a down payment
Question:
Wagner Family The Wagners have saved $5,000 towards their goal to have $50,000 for a down payment on a house in 6 years.
They will put the $5,000 in an account along with money they will deposit annually. They don't know how much that annual deposit should be, so they've asked you to calculate it They have found a savings institution that will pay 6% interest.
Audette Family
The Audettes have set a goal to have $50,000 for a down payment on a house in 6 years. They have not saved anything so far. They have asked you to calculate how much they will need to put away each year to achieve their $50,000 down-payment goal. They have found a savings institution that will pay 6% interest. Use the scenarios along with the following factor table data to answer each of the questions. Note that the complete Future Value and Future Value Annuity tables (as well as the Present Value and Present Value Annuity tables) are located in the appendix in your text.
Table of Future Value Factors:
Year
Interest Rate
5% 6% 8%
1 1.050 1.060 1.080
2 1.102 1.120 1.166
3 1.158 1.190 1.260
4 1.216 1.260 1.360
5 1.276 1.340 1.469
6 1.340 1.420 1.587
8 1.477 1.590 1.851
10 1.629 1.790 2.159
Table of Future Value Annuity Factors:
Year
Interest Rate
5% 6% 8%
1 1.000 1.000 1.000
2 2.050 2.060 2.080
3 3.152 3.180 3.246
4 4.310 4.380 4.506
5 5.526 5.630 5.867
6 6.802 6.970 7.336
8 9.549 9.890 10.637
10 1 2.578 13.180 14.487
What is the amount of money the Wagners will need to deposit annually (rounded to the nearest two decimal places) to achieve their down-payment goal?
What is the amount of money the Audettes will need to deposit annually (rounded to the nearest two decimal places) to achieve their down-payment goal?
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman