Forty-five year old Jim Wiseman just got a new job earning $60,000 per year. He will save 10% of his income each year for his retirement at age 55. He must decide whether to invest his savings in Big Sky Bank which offers 20% compounded semi-annually or Valley Bank which offers 8% compounded quarterly. Calculation Competency: A. What compounded amount would he earn he chooses to invest his savings in Big Sky Bank? B. What compounded amount would he earn if he chooses to invest his savings in Valley Bank? Interpretation Competency: C. How much interest would Wiseman's savings earn if he chose Big Sky Bank? Conclusion/Analysis Competency: D. Which bank should Wiseman choose and why? Communication Competency: E. Please write you answer to part Din complete sentences. FUTURE VALUE OF ORDINARY ANNUITY (annuity in arrears -- end of period payments) RATE PER PERIOD 5 0.25% 0.50% 0.75% 1.00% 1.50% 2.00% 2.50% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 1 1.00000 100000 1.00000 1.00000 1.00000 1.00000 100000 1.00000 100000 100000 1.00000 100000 1.00000 1.00000 1.00000 100000 1.00000 22.00250 2.00500 2.00750 2.01000 201500 2.02000 2.02500 2.03000 2.04000 2.05000 2.06000 2.07000 2.08000 2.09000 2.10000 2.11000 2.12000 33.00751 3.01502 3.02256 3.03010 3.04522 3.06040 3.07563 3.090903.12160 3.152503.183603-21490 3.24640 3.27810 3.31000 3.34210 3.37440 4 4.01503 4.03010 4.04523 4.06040 4.09090 4.12161 4.15252 4.18363424646 4310134.37462 4.439944.50611 4.57313 4.64100 4.70973 4.77933 5 5.02506 5.05025 5.07556 5.10101 5.15227 5.204045.25633 5.309145.416325.52563 5.637095.750745.86660 5.984716.10510 6.227806.35285 66.037636.075506.113636.15202 6.22955 6.308126.387746.468416.63298 6.80191 6.97532 7.153297.335937.52333 7.715617.912068.11519 7 7.05272 7.105887.15948 7.21354 7.32299 7.43428 7.54743 7.66246 7.89629 8.14201 8.393848.65402 8.922809.20043 9.48717 9.78327 10.08901 8.070358.14141 8.21318 8.28567 8.432846.582978.73612 8.89234921423 9.54911 9.89747 10.25960 10.63663 11.02647 11.43569 11.85943 12.29969 9 9.090539.182129.27478 9.36853 9.55933 9.75463 9.95452 10.1591110.58280 11.02656 11.49132 11.97799 12.48756 13.02104 13.57948 14.16397 14.77566 10 10.11325 10.22803 10.34434 10.46221 10.70272 10.9497211.20338 11.46388 12.00611 12.5778913.18079 13.81645 14.48656 15.19293 15.93742 16.72201 17.54874 1111.13854 11.2791711.42192 11.56683 11.86326 12.16872 12.48347 12.80780 13.48635 14.20679 14.97164 15.78360 16.64549 17.56029 18.5311719.56143 20.65458 12 12.1663812.33556 12.50759 12.68250 13.0412113.41209 13.79555 14. 19203 15.02581 15.91713 16.86994 17.88845 18.97713 20.14072 21.3842822.71319 24.13313 13 13.19680 13.39724 13.60139 13.80933 14.23683 14.68033 15.14044 1561779 16.62684 17.71298 18.88214 20.14054 21.49530 22.95338 24 52271 26.21164 28.02911 14 14 22979 14.46423 14.70340 14.94742 15.45038 15.97394 16.51895 17.08632 18.29191 19.59863 21.0150722.5504924.21492 26.01919 27 97498 30.09492 32.39260 15 15 2653715.5365515.81368 16.09690 16.6821417.29342 1793193 18.5989120.02359 21.57856 23.27597 25.1290227.15211 29.3609231.7724834.40536 37 27971 16 16.30353 16.61423 16.93228 17.25786 17.93237 18.63929 19.38022 20.15688 21.82453 23 65749 25.6725327 888030.32428 33.00340 35 9497339.18995 42.75328 17 17 34429 17.69730 18.05927 18.43044 19.20136 20.0120720 8547321.76159 23.69751 25 84037 28 21288 30 8402233.7502336.97370 40 54470 44.50084 48.88357 18 18 38765 18.78579 19.19472 19.61475 20.48938 21.41231 223853523.41444 25.64541 28. 1323830.90565 33.99903 37.45024 41,30134 45 59917 50.3959455.74971 19 19.43362 19.87972 20 33858 20.81090 21.796722284056 23.94601 25.11687 27.6712330 53900 33.75999 37.37896 41.44626 46.01846 51.15909 56.9394963.43958 20 20.4822020.97912 21.49122 22.01900 23.12367 24.29737 25 54466 25 87037 29.77808 33 06595 36.7855940.99549 45.76196 51,160125727500 64.2028372.05244 21 21.53341 22.0840122.65240 23 23919 24.47052 25.78332 27.18327 28 67649 31.96920 35 71925 39.9927344 86518 50 42292 56.7645364 00250 72 2651481.69874 22 22 58724 23.19443 23 82230 24.47159 25.83758 27.29898 28 8628630 53678 34 2479738 50521 43.39229 49.00574 55.45676 6287334 71.40275 81.21431 92.50258 23 23.54371 24.3104025.00096 25.71630 272251428.84495 30 58443 3245288 36 61789 41.4304846.99583 53.43514 60.89330 69.53194 79.54302 91.14788 104 6029 24 24.70282 25.43196 26.18847 26.97346 28633523042186 32 34904 34.42647 39,08260 44 5020050 81558 58.1766766.7647676.7898188.49733 102. 1742118.1552 25 25.76457 26.559122738488 28.24320300630232 0303034.15776 36.45926 41.64591 47.72710 54.86451 63 24904 73.1059484.70090 98.347061144133133.3339 30 31.11331 32 28002 33.50290 34.7848937.53868 40.56808 43.90270 47 57542 56.0849466.4388579,0581994.46079 113.2832136 3075 164 4940199 0209 241 3327 35 38 5292438.14538 39.85381 41 66028 45.59209 49.99448 54.92821 60.4620873.65222 90 32031 1114348 1382369172 3168 215.7108 271.0244 341.5896 431.6835 40 4201320 44.1588546.44648 48.88637 54267896040198 67 4025575.40126 95 02552 120.7998154.7620 199.6351 259.0565 337 8824 442 5926581.8261767 0914 50 53.1886856.6451660.39428 64.46318 73.6828384.57940 97 48435 112 7969 152.6671 209.3480 290 3359 406.5289573.7702 815.0838 1163.909 1668.771 2400.018