1. Time value of money calculations are used to determine the value of potential retirement benefits. If a person deposits $1,800 a year in a retirement account earning 6 percent for 20 years, what would be the future value of that account?
2. A non-taxable employee benefit has a greater value than the stated amount. What would be the tax equivalent\ value of a nontaxable employee benefit of $392? Assume a 30 percent tax rate.