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George and Yujia currently insure their cars with separate companies, paying $620 and $640 a year

Accounting

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George and Yujia currently insure their cars with separate companies, paying $620 and $640 a year. If they insured both cars with the same company, they would save 15 percent on the annual premiums.

What would be the future value of the annual savings over 10 years based on 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. Do not round intermediate calculations. Omit the "$" sign in your response.)