Assume you want to retire early at age 53. You plan to save using one of the following two strategies (1) save 55,100 a year in an IRA beginning when you are 23 and ending when you are 53 (30 years) or (2) wait until you are 41 start saving and then save $12.750 per year for the next 12 years. Assume you will cam the histork stock market average of 14% per year (Click the icon to view the future value annuity factor table) (Click the icon to view the future vale factor table) Click the icon to view the presentant factor table) (Click the icon to view the present value factor table) Read the requirement Requirement 1. How much out-of-pocket cash will you invest under the two options? Requirements Calculate how much out of pocket cash you will invest under the two options 153 000 1. How much out-of-pocket cash will you invest under the two options? 2. How much savings will you have accumulated at age 53 under the two 153 000 options 3. Explain the results Requirement. How much will you have accumulated at age 53 under the two options? 4. If you let the savings continue to grow for nine more years with no further Calculate the total amount of that you will have accumulated at age 53 under the two options out of pocket investments under each scenario what will the investment be worth when you are Done Check 13 1.000 Periods 1 2 3 4 5 396 1.000 2030 3.091 4.184 5 309 2040 12% 1.000 2120 3.374 4.779 6.353 14% 1.000 2140 3.440 4.921 6.610 16% 1 000 2160 3.506 5.066 6.877 18% 1.000 2180 3.572 6.215 7.154 205 1.000 2200 3.640 5.368 7.442 6 2% 1.000 2020 3.060 4.122 5.204 6.308 7434 8,583 9.755 10.950 12.169 13.412 14.680 15.974 17 293 1.000 2010 3.030 4.060 5.101 6.152 7.214 8.286 9369 10 462 11567 12683 13. 809 14.947 16 097 3.122 4 246 5.416 6633 7 898 9.214 10.583 12.006 6.468 7.662 8892 10.159 11.464 Future Value of Annuity of $1 5% 8% 10% 1000 1.000 1.000 1.000 2050 2060 2080 2.100 3.153 3.184 3246 3310 4 310 4375 4506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11027 11.491 12488 13.579 12.578 13.181 14.487 15 937 14.207 14.972 16 645 18.531 15 917 16.870 18.977 21 384 17.713 18 882 21.495 24 523 19 599 21.015 24 215 27.975 21.579 23.276 27.152 31.772 33 086 36786 45 762 57 275 47.727 54 866 73.106 98 347 8.115 10.089 12 300 14.776 17 549 8 9 10 9.930 12.916 16.499 20.799 25 959 8.977 11.414 14.240 17 519 21.321 25.733 30.350 36.786 43.572 51.580 9.442 12.142 15 327 19.085 23.521 28.755 34 931 12 219 50 818 50 965 8.536 10730 13 233 16.085 19 337 23.045 27 271 32 089 37581 43 342 91025 181 871 11 12 13 14 15 12.808 14.192 15618 17 086 18.599 26.870 36.459 13.486 15.026 15 627 18.292 20024 29.778 41 540 20.655 24.133 28.029 32 393 37 280 32.150 39 581 48.497 59.196 72035 185 588 471.981 72052 133 334 115380 249.214 146 628 342 603 20 25 22.019 28.243 24 297 32 030 Print Done x i Reference Periods 1 2 3 4 5 12% 0.893 1.690 2402 3.037 3.605 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 6 7 8 9 10 Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 2941 2.884 2829 2.775 2.723 2673 2577 2.487 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 5.79 5.601 5.417 5.242 5.076 4.917 4.623 4.355 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 7.652 7.325 7,020 6.733 6.463 6.210 5.747 5.335 8566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 11 255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 12.134 11 348 10.635 9.986 9.394 8.853 7.904 7.103 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 13.865 12.849 11938 11.118 10.380 9.712 8.559 7.606 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9077 4.111 4.564 4.968 5.328 5.650 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4031 4.192 11 12 13 14 15 5.938 6.194 6.424 6.628 6.811 5.453 5.660 5.842 6.002 6.142 5.029 5.197 5,342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4327 4.439 4.533 4.611 4.675 20 25 7.469 7.843 6.623 6.873 5.929 6.097 5.353 5.467 4.870 4.948 Print Done 12,75 ne pre Future Value of $1 Periods 8% 1080 16% 1150 1 19 1,010 1020 1.030 1041 1.051 2% 1020 1040 1061 1082 1.104 2 3 4 5 3% 1.030 1,061 1093 1.126 1.159 1.166 5% 1050 1.103 1.158 1216 1.276 1040 1082 1.125 1.170 1217 6% 1060 1.124 1.191 1262 1.338 10% 1 100 1210 1331 1464 1611 out-o 12% 1120 1254 1.405 1.574 1.762 1974 2211 2476 2773 3.100 189 1180 1392 1543 1939 2283 1.140 1300 1482 1589 1.925 1.250 1.350 1.469 20% 1200 1400 1.723 2074 2493 1.345 1561 1.811 2100 pocke 6 7 8 19 10 1062 1072 1083 1340 1407 1.194 1230 1.267 1305 1344 1.265 1.316 1.369 1423 1.480 1.587 1714 1.851 1.999 2150 1.772 1949 2.144 2358 2594 2195 2502 2853 3.252 3707 2436 2828 3273 3.300 4411 2985 3.583 4300 5160 6.192 1094 1.561 1.629 1.105 h savin 1126 1.149 1.172 1.195 1.219 1243 125 1234 131 1346 1.116 1127 1384 1420 2853 3.130 11 12 13 14 15 of sav 1.419 1504 1594 1689 1.791 1.898 2012 2133 2261 2.397 3207 292 1.539 1601 1.665 1.732 1.80 1710 1.790 1.888 1990 2079 2653 3330 2332 2518 2.720 2937 3.172 4318 5492 2.700 3.185 3.759 4235 5234 6.175 7.288 8.599 10.147 11.974 27393 5255 1513 1558 3.479 3.690 4383 4837 5.474 9.646 17.000 5117 5905 6.888 7.980 9.255 19:48 7.430 8910 10.699 12330 15 3.797 4.177 6.727 10.33 1161 1220 2.191 7.138 13.743 25462 20 25 1430 1541 1300 2094 38 330 95298 2006 6.30 edit nie Print Done are value annuity fag sent value annuity Periods 1 f-pocket cash will yo et cash you will inves 2 3 4 5 19 0990 0.980 0.971 0.961 0951 0.942 0.933 0923 0.914 0.905 F Odo 0.961 0.942 0.924 0.900 0888 0871 0953 0.837 0.820 0.971 0943 0.915 0.888 0.863 12% 14% 0.893 0.877 0797 0.769 0.712 0.675 0.636 0.592 0.567 0.519 0.507 0.458 0.452 0.400 0.404 0.351 0.361 0.303 0322 0270 16% 0.862 0.743 0.541 0.562 0.476 18% 0.847 0.718 0.609 0516 0.437 20% 0833 0.694 0.579 0492 0402 6 7 3 9 10 Present Value of $1 45 5% 6% 89 10% 0.952 0952 0.943 0.926 0.909 0.925 0.907 0.890 0.857 0.826 OB30 0.864 0.840 0.794 0.751 0.855 0.823 0.792 0.735 0.683 0.822 0.784 0.747 0.681 0621 0.790 0745 0.705 0.630 0.564 0.750 0.711 0565 0.533 0.513 0.731 0.677 0.627 0.540 0.467 0.703 0.645 0592 0500 0424 0.6760614 0.558 0.463 0386 0.650 0.585 0.527 0.429 0.350 0.625 0.557 0497 0.397 0319 0.601 05300469 0.358 0290 0.577 0505 0.442 0.340 0.253 0.555 0481 0417 0.315 0239 0258 0.377 0312 0.215 0.149 0.375 0295 0.233 0.125 0092 0.410 0.354 0.305 0263 0227 0370 0.314 0.258 0.225 0.191 0.837 0.813 0.789 0.766 0742 0.722 0.701 0.687 0.661 0.542 mgs will you have ace rings that you will have 11 12 13 14 15 20 25 0896 0.837 0879 0.870 0.851 0.820 0780 0 804 0.789 0773 0.758 0743 0287 0.257 022 0205 0.183 0.104 0.059 0.237 0 200 0.182 0.160 0.140 0.195 0.162 0.168 0.137 0.145 0.116 0.125 0.099 0108 0.084 0051 0.037 0.024 0010 0.335 0.279 0233 0.194 0.162 0135 0.112 0.099 0075 0055 0025 0.010 0554 01673 0510 0.073 elds and then dicka Print Done Assume you want to retire early at age 53. You plan to save using one of the following two strategies (1) save 55,100 a year in an IRA beginning when you are 23 and ending when you are 53 (30 years) or (2) wait until you are 41 start saving and then save $12.750 per year for the next 12 years. Assume you will cam the histork stock market average of 14% per year (Click the icon to view the future value annuity factor table) (Click the icon to view the future vale factor table) Click the icon to view the presentant factor table) (Click the icon to view the present value factor table) Read the requirement Requirement 1. How much out-of-pocket cash will you invest under the two options? Requirements Calculate how much out of pocket cash you will invest under the two options 153 000 1. How much out-of-pocket cash will you invest under the two options? 2. How much savings will you have accumulated at age 53 under the two 153 000 options 3. Explain the results Requirement. How much will you have accumulated at age 53 under the two options? 4. If you let the savings continue to grow for nine more years with no further Calculate the total amount of that you will have accumulated at age 53 under the two options out of pocket investments under each scenario what will the investment be worth when you are Done Check 13 1.000 Periods 1 2 3 4 5 396 1.000 2030 3.091 4.184 5 309 2040 12% 1.000 2120 3.374 4.779 6.353 14% 1.000 2140 3.440 4.921 6.610 16% 1 000 2160 3.506 5.066 6.877 18% 1.000 2180 3.572 6.215 7.154 205 1.000 2200 3.640 5.368 7.442 6 2% 1.000 2020 3.060 4.122 5.204 6.308 7434 8,583 9.755 10.950 12.169 13.412 14.680 15.974 17 293 1.000 2010 3.030 4.060 5.101 6.152 7.214 8.286 9369 10 462 11567 12683 13. 809 14.947 16 097 3.122 4 246 5.416 6633 7 898 9.214 10.583 12.006 6.468 7.662 8892 10.159 11.464 Future Value of Annuity of $1 5% 8% 10% 1000 1.000 1.000 1.000 2050 2060 2080 2.100 3.153 3.184 3246 3310 4 310 4375 4506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11027 11.491 12488 13.579 12.578 13.181 14.487 15 937 14.207 14.972 16 645 18.531 15 917 16.870 18.977 21 384 17.713 18 882 21.495 24 523 19 599 21.015 24 215 27.975 21.579 23.276 27.152 31.772 33 086 36786 45 762 57 275 47.727 54 866 73.106 98 347 8.115 10.089 12 300 14.776 17 549 8 9 10 9.930 12.916 16.499 20.799 25 959 8.977 11.414 14.240 17 519 21.321 25.733 30.350 36.786 43.572 51.580 9.442 12.142 15 327 19.085 23.521 28.755 34 931 12 219 50 818 50 965 8.536 10730 13 233 16.085 19 337 23.045 27 271 32 089 37581 43 342 91025 181 871 11 12 13 14 15 12.808 14.192 15618 17 086 18.599 26.870 36.459 13.486 15.026 15 627 18.292 20024 29.778 41 540 20.655 24.133 28.029 32 393 37 280 32.150 39 581 48.497 59.196 72035 185 588 471.981 72052 133 334 115380 249.214 146 628 342 603 20 25 22.019 28.243 24 297 32 030 Print Done x i Reference Periods 1 2 3 4 5 12% 0.893 1.690 2402 3.037 3.605 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 6 7 8 9 10 Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 2941 2.884 2829 2.775 2.723 2673 2577 2.487 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 5.79 5.601 5.417 5.242 5.076 4.917 4.623 4.355 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 7.652 7.325 7,020 6.733 6.463 6.210 5.747 5.335 8566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 11 255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 12.134 11 348 10.635 9.986 9.394 8.853 7.904 7.103 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 13.865 12.849 11938 11.118 10.380 9.712 8.559 7.606 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9077 4.111 4.564 4.968 5.328 5.650 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4031 4.192 11 12 13 14 15 5.938 6.194 6.424 6.628 6.811 5.453 5.660 5.842 6.002 6.142 5.029 5.197 5,342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4327 4.439 4.533 4.611 4.675 20 25 7.469 7.843 6.623 6.873 5.929 6.097 5.353 5.467 4.870 4.948 Print Done 12,75 ne pre Future Value of $1 Periods 8% 1080 16% 1150 1 19 1,010 1020 1.030 1041 1.051 2% 1020 1040 1061 1082 1.104 2 3 4 5 3% 1.030 1,061 1093 1.126 1.159 1.166 5% 1050 1.103 1.158 1216 1.276 1040 1082 1.125 1.170 1217 6% 1060 1.124 1.191 1262 1.338 10% 1 100 1210 1331 1464 1611 out-o 12% 1120 1254 1.405 1.574 1.762 1974 2211 2476 2773 3.100 189 1180 1392 1543 1939 2283 1.140 1300 1482 1589 1.925 1.250 1.350 1.469 20% 1200 1400 1.723 2074 2493 1.345 1561 1.811 2100 pocke 6 7 8 19 10 1062 1072 1083 1340 1407 1.194 1230 1.267 1305 1344 1.265 1.316 1.369 1423 1.480 1.587 1714 1.851 1.999 2150 1.772 1949 2.144 2358 2594 2195 2502 2853 3.252 3707 2436 2828 3273 3.300 4411 2985 3.583 4300 5160 6.192 1094 1.561 1.629 1.105 h savin 1126 1.149 1.172 1.195 1.219 1243 125 1234 131 1346 1.116 1127 1384 1420 2853 3.130 11 12 13 14 15 of sav 1.419 1504 1594 1689 1.791 1.898 2012 2133 2261 2.397 3207 292 1.539 1601 1.665 1.732 1.80 1710 1.790 1.888 1990 2079 2653 3330 2332 2518 2.720 2937 3.172 4318 5492 2.700 3.185 3.759 4235 5234 6.175 7.288 8.599 10.147 11.974 27393 5255 1513 1558 3.479 3.690 4383 4837 5.474 9.646 17.000 5117 5905 6.888 7.980 9.255 19:48 7.430 8910 10.699 12330 15 3.797 4.177 6.727 10.33 1161 1220 2.191 7.138 13.743 25462 20 25 1430 1541 1300 2094 38 330 95298 2006 6.30 edit nie Print Done are value annuity fag sent value annuity Periods 1 f-pocket cash will yo et cash you will inves 2 3 4 5 19 0990 0.980 0.971 0.961 0951 0.942 0.933 0923 0.914 0.905 F Odo 0.961 0.942 0.924 0.900 0888 0871 0953 0.837 0.820 0.971 0943 0.915 0.888 0.863 12% 14% 0.893 0.877 0797 0.769 0.712 0.675 0.636 0.592 0.567 0.519 0.507 0.458 0.452 0.400 0.404 0.351 0.361 0.303 0322 0270 16% 0.862 0.743 0.541 0.562 0.476 18% 0.847 0.718 0.609 0516 0.437 20% 0833 0.694 0.579 0492 0402 6 7 3 9 10 Present Value of $1 45 5% 6% 89 10% 0.952 0952 0.943 0.926 0.909 0.925 0.907 0.890 0.857 0.826 OB30 0.864 0.840 0.794 0.751 0.855 0.823 0.792 0.735 0.683 0.822 0.784 0.747 0.681 0621 0.790 0745 0.705 0.630 0.564 0.750 0.711 0565 0.533 0.513 0.731 0.677 0.627 0.540 0.467 0.703 0.645 0592 0500 0424 0.6760614 0.558 0.463 0386 0.650 0.585 0.527 0.429 0.350 0.625 0.557 0497 0.397 0319 0.601 05300469 0.358 0290 0.577 0505 0.442 0.340 0.253 0.555 0481 0417 0.315 0239 0258 0.377 0312 0.215 0.149 0.375 0295 0.233 0.125 0092 0.410 0.354 0.305 0263 0227 0370 0.314 0.258 0.225 0.191 0.837 0.813 0.789 0.766 0742 0.722 0.701 0.687 0.661 0.542 mgs will you have ace rings that you will have 11 12 13 14 15 20 25 0896 0.837 0879 0.870 0.851 0.820 0780 0 804 0.789 0773 0.758 0743 0287 0.257 022 0205 0.183 0.104 0.059 0.237 0 200 0.182 0.160 0.140 0.195 0.162 0.168 0.137 0.145 0.116 0.125 0.099 0108 0.084 0051 0.037 0.024 0010 0.335 0.279 0233 0.194 0.162 0135 0.112 0.099 0075 0055 0025 0.010 0554 01673 0510 0.073 elds and then dicka Print Done