3. Calculating the Amount Spent on Housing. Calculate approximately how much money an older (age 65-74) household with an annual income of $45,000 spends on housing each year. (Hint: Use Exhibit 18-4) 4. Calculating the Amour Spent on Health Care. Using Exhibit 18-4, calculate approximately how much money the household from problem 3 spends on health care. 5. Calculating an IRA Accumulation. When Jamal graduated from college recently, his parents gave him $1,000 and told him to use it wisely. Jamal decided to use the money to start a retirement account. After doing some research about different options, he put the entire amount into a tax-deferred IRA that pays 11 percent interest, compounded annually. Calculate how much money Jamal will have in his IRA at the end of 10 years, assuming that the interest rate remains the same and that he does not deposit any additional money. Show your calculations in the form of a chart. 626 PART 6 CONTROLLING YOUR FINANCIAL FUTURE AGE 65-74 AGE 75 & OLDER Average $ Amount Percent Average $ Amount Percent EXHIBIT 18-4 How "average" older (65-74 and 75+) households spend their money Retired families spend a greater share of their income for food, housing, and medical care than nonretired families Pretax Annual Income $52,366 $48,855 $ 15,838 Annual Expenditures Housing Food Clothing $ 6,284 $ 1,417 100 100 32.4 12.0 2.9 17.1 12.2 6.1 5.7 $35,467 $36,673 $ 13,375 $ 4,349 $ 683 $ 5,091 $ 5,708 $ 1,626 $ 800 $ 5,041 100 100 36.5 11.9 1.9 13.9 15.6 4,4 Transportation $ 8,338 Health Care $ 5,456 Entertainment $ 2,988 $ 2,788 Pensions and Social Security Other $ 6,074 11.6 13.7 includes cash contributions alcohol, tobacco personal care products and services.reading education, le and personal insurance and miscellaneous expenses Source: Ann C Foster "A Closer Look at Spending Patterns of Older American Beyond the Numbers Prices and Spending, vol. 5, no. 4 (U.S. Bureau of Labor Statistics, March 2016). https//www.blago opub/btn/volume 5/pending patterns of older americans hom accessed June 2018