Homework: 3-3 MyFinanceLab: Assignment: Module Three Homewor Score: 0 of 1 pt 60

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Homework: 3-3 MyFinanceLab: Assignment: Module Three Homewor Score: 0 of 1 pt 6016(6 complete) HW Score: 58.21%, 3.49 of 6 pts Problem P6-8 (similar to) Question Help Javier is currently paying $1,200 in interest on his credit cards annually. If, instead of paying interest, he saved this amount every year, how much would he accumulate in a tax-deferred account earning 7 percent over 11, 16, or 21 years? Click on the table icon to view the FVIFA table If, instead of paying interest, this amount was saved every year in a tax-deferred account earning 7 percent over 11 years, the amount accumulated would be S(Round to the nearest dollar.) 1 Data Table Compound Sum of an Annuity of $1 (FVIFA) 2.040 2.060 2.080 2.120 3.374 3.278 3.342 4.246 4.310 4.506 4.57 6.228 6.353 6.4 7.523 9.783 11.859 10.089 12.300 9.214 10.58311.027 11.49111.978 12.488 13.021 9.549 9.89710 10.63711 12.757 11.436 13.579 10 12.006 2.57813.181 13.816 14.48715. 17.549 21.814 13.486 14.207 14.97215.784 16.64517 15.026 15.917 19.561 22.713 26.212 30.095 34.405 18.531 21.384 16.870 17.888 18.97720.141 13 16.62717.71318.882 20.141 21.495 2 22.95324.523 18.292 19.599 21.01522 20.024 21.579 23.276 25.129 27.15229.361 28.029 32.393 37.280 29 34 24.215 26.019 27.975 31.772 35.950 40.545 45.599 16 21.82523.657 25.67327.88830.324 33 17 23.69825.840 28.21330 44.501 33.750 36.974 25.645 28.132 30.906 33.99937.45041.301 48.884 55.750 63.440 72.052 53.7 41.446 46.018 19 27.67130.53933.760 37.3 20 29.77833.06636.786 40.99545.76251.1 21 22 34.248 38.505 43.39249.006 55.457 62.87 23 24 39.08344.502 50.816 58.17 25 41.646 47.727 54.8656 30 56.08566.43979.058 94.461 113.283136 40 50 152.667209.348290.336 406.529 573.770 815 56.939 64.203 72.265 80.947 57.275 64.002 71,403 79.543 88.497 102.174 98.347 114.413133.334 155 31.969 35.71939.99344.865 50.42356.7 92.503105.491 91.148 104.603 120 36.618 41.430 46.99653.436 60.89369 66.76576 118.155136.831 63.249 73.106 84.701 164.494199.021 241.333 293.1 442.593 95.026 20.800 154.762199.635 259.057 337 581.826767.0911013 1163.909 1668.7712400.018 3459 PrintDone Enter your answer in the answer box and then click Check Answer Clear All remaining

Explanation / Answer

As per the chart for n=11 years and interest of 7% annually, $1 will be $15.784.

For $1,200 credit card interest, if would have saved and invested as per the above plan then it would have been $1,200* 15.784 = $18,941 (Rounded to nearest integer).

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