Future value of five years 8% = 1.469
NET INCOME IS NOT GIVEN, SO WE HAVE TO ASSUME THAT FULL AMOUNT $1000 WILL TAKEN AS DONATION AMOUNT
a. TAX SAVING = 20.5% X 1000 = 205
b . FUTURE VALUE OF TAX SAVINGS = 205 X 1.469 = 301.15 (THUMBS UP PLEASE)
Future value of five years 8% = 1.469 On December 30, you decide to make a...
Problem 3-14 (LO3.4) Assume your other itemized deductions exceed the standard deduction amount. On December 30, you decide to make a $2,200 charitable donation. a. If you are in the 27 percent tax bracket, how much will you save in taxes for the current year? Tax savings $594 b. If you deposit that tax savings in a savings account for the next six years at 7 percent, what will be the future value of that account? Use Exhibit 1-A. (Round...
Brenda plans to reduce her spending by $90 a month. Calculate the future value of this increase in savings over the next 18 years. (Assume an annual deposit to her savings account, and an annual interest rate of 8 percent.) Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future value
Calculate the future value of a retirement account in which you deposit $3,000 a year for 40 years with an annual interest rate of 8 percent. Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to the nearest whole number.)
Use future value and present value calculations to determine the following (a) The future value of a $400 savings deposit after eight years at an annual interest rate of 3 percent. Use Table 1. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future value (b) The future value of saving $1,800 a year for five years at an annual interest rate of 4 percent. Use Table 2. (Round time value factor to 3...
(b) The future value of $1,200 saved each year for 10 years at 6 percent. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future value (c) The amount a person would have to deposit today (present value) at an Interest rate of 6 percent to have $1,200 five years from now. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Present value (d) The amount a person...
Calculate the following. a. The future value of $460 eight years from now at 7 percent. (Round your final answer to 2 decimal places.) b. The future value of $500 saved each year for 7 years at 5 percent. (Round your final answer to 2 decimal places.) c. The amount a person would have to deposit today (present value) at an interest rate of 6 percent to have $2,200 five years from now. (Round your final answer to...
Problem 5-1 Future Value (LG5-1) Compute the future value in year 7 of a $2,200 deposit in year 1, and another $1700 deposit at the end of year 4 using a 8 percent interest rate (Do not round intermediate calculations and round your final answer to 2 decimal places.) Problem 4 and 5-6 Present Value and Annuity Payments A local furniture store is advertising a deal in which you buy a $4,200 living room set with three years before you need to make...
(b) The future value of $900 saved each year for 10 years at 7 percent. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future valueÅ¿ (c) The amount a person would have to deposit today (present value) at an interest rate of 8 percent to have $1,000 five years from now. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Present value (d) The amount a person...
For the next 8 years, you decide to place $3,747 in equal year-end deposits into a savings account earning 5.74 percent per year. How much money will be in the account at the end of that time period? Round answer to two decimal places.
Assume your other itemized deductions exceed the standard deduction amount. On December 30, you decide to make a $1,800 charitable donation. a. If you are in the 27 percent tax bracket, how much will you save in taxes for the current year? Tax savings b. If you deposit that tax savings in a savings account for the next five years at 8 percent, what will be the future value of that account? Use Exhibit 1-A. (Round time value factor to...