Analysis: For the Thomas Family: assume that they could afford to make the same extra payment as the Jeffersons, but instead they decide to put that money (12a. from Procedures
above) into a savings plan called an annuity. Use the Future Value mini financial calculator of
the Financial Toolbox spreadsheet to calculate how much they will have in their savings plan at
the end of 30 years at the various interest rates. Write your answers (to the nearest dollar) in the
appropriate cells of the table on the student worksheet.
For the Jefferson Family: assume that they save nothing until their loan is paid off, but then after
their debt is paid, they start putting their full monthly payment and 1/12 (#2b. from Procedures
above) into a savings plan. The time they invest is equal to 30 years minus the number of years
needed to pay off the loan (#3 from Procedures above). Use the Future Value mini financial
calculator to calculate how much they will have in their savings plan at the various interest rates.
Write your answers (to the nearest dollar) in the appropriate cells of the table on the student
worksheet
Thomas Family
1/12th of Monthly Payment
Annuity Amount in 30 Years
Jefferson Family
Monthly Payment + Extra 1/12h
Annuity Amount in 30 Years
Rates
0%
1%
2%
Rates
0%
1%
2%
3%
4%
5%
6%
7%
8%
3%
4%
5%
6%
7%
8%
Results: Complete the Student Worksheet and turn in your completed worksheet on Canvas.