ebook Problem 7-02 A self-employed person deposits $3,000 annually in a retirement account (called a Keogh or H.R. 10 plan) that earns 8 percent. Use Appendix A and Appendix C to answer the questions. Round your answers to the nearest dollar. a. How much will be in the account when the individual retires at the age of 65 if the savings program starts when the person is age 40? $ b. How much additional money will be in the account if the saver defers retirement until age 70 and continues the contributions? c. How much additional money will be in the account if the saver discontinues the contributions at age 65 but does not retire until age 70? $ Interest Factors for the Future Value of One Dollar 10% Time Period (e.g. year) 1 2 3 4 5 1% 2% 3% 4% 5% 6% 7% 1.010 1.020 1.030 1.040 1.050 1.060 1.070 1.020 1.040 1.061 1.082 1.102 1.124 1.145 1.030 1.061 1.093 1.125 1.158 1.191 1.225 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.051 1.104 1.159 1.217 1.276 1.338 1.403 8% 1.080 1.166 1.260 1.360 1.469 9% 1.090 1.188 1.295 1.412 1.539 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 14% 1.140 1.300 1.482 1.689 1.925 15% 1.150 1.322 1.521 1.749 2.011 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 1.574 1.762 6 7 8 9 10 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.105 1.219 1.344 1.480 1.629 1.791 1.967 1.587 1.714 1.851 1.999 2.159 1.677 1.828 1.993 2.172 2.367 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.313 2.660 3.059 3.518 4.046 2.436 2.826 3.278 3.803 4.411 2.700 3.186 3.759 4.436 5.234 4.652 5.350 1.127 11 12 13 14 15 1.116 1.243 1.384 1.539 1.710 1.898 2.105 1.268 1.426 1.601 1.796 2.012 2.252 1.138 1.294 1.469 1.665 1.886 2.133 2.410 1.149 1.319 1.513 1.732 1.980 2.261 2.579 1.161 1.346 1.558 1.801 2.079 2.397 2.759 2.332 2.518 2.720 2.937 3.172 2.580 2.813 3.066 3.342 3.642 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 6.153 5.117 5.936 6.886 7.988 9.266 6.176 7.287 8.599 10.147 11.973 7.076 8.137 1 16 17 18 19 20 1.173 1.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 1.184 1.400 1.653 1.948 2.292 2.693 3.159 3.700 4.328 1.196 1.428 1.702 2.026 2.407 2.854 3.380 3.996 4.717 1.208 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 1.220 1.486 1.806 2.191 2.653 3.207 3.870 4.661 5.604 4.595 6.130 8.137 9.358 10.748 5.054 6.866 9.276 10.761 12.468 5.560 7.690 10.575 12.375 14.463 6.116 8.613 12.056 14.232 16.777 6.728 9.646 13.743 16.367 19.461 14.129 16.672 19.673 23.214 27.393 3 25 9 6.848 1.282 1.641 2.094 2.666 3.386 4.292 5.427 8.623 62.688 10.835 17.000 26.462 32.919 40.874 30 1.348 1.811 2.427 3.243 4.322 5.743 7.612 10.063 13.268 17.449 29.960 50.950 66.212 85.850 143.370 23 Interest Factors for the Future Value of an Annuity of One Dollar Time Period (e.g. year) 1 2 3 4 5 10% 1.000 1% 1.000 2.010 3.030 4.060 5.101 2%. 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 5% 1.000 2.050 3.152 4.310 5.526 696 1.000 2.060 3.184 4.375 5.637 7% 1.000 2.070 3.215 4.440 5.751 8% 1.000 2.080 3.246 4.506 5.867 9% 1.000 2.090 3.278 4.573 5.985 2.100 12% 1.000 2.120 3.374 4.770 6.353 14% 1.000 2.140 3.440 4.921 6.610 3.310 4.641 6.105 16% 1.000 2.160 3.506 5.067 6.877 7.716 6 7 8 9 10 6.152 7.214 8.286 9.369 10.462 6.308 7434 8.583 9.755 10.950 6.468 7.662 8.892 10.159 11.464 6.633 6.802 7.898 8.142 9.214 9.549 10.583 11.027 12.006 12.578 6.975 8.394 9.897 11.491 13.181 7.153 8.654 10.260 11.978 13.816 7.336 8.923 10.637 12.488 14.487 7.523 9.200 11.028 13.021 15.193 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.978 11.413 14.240 17.518 21.321 11 12 13 11.567 12.683 13.809 14.947 16.097 12.169 13.412 14.680 15.974 17.293 12.808 13.486 14.192 15.026 15.618 16.627 17.086 18.292 18.599 20.024 14.207 15.917 17.713 19.599 21.579 14.972 16.870 18.882 21.051 23.276 15.784 17.888 20.141 22.550 25.129 16.645 18.977 21.495 24.215 27.152 17.560 20.141 22.953 26.019 29.361 18.531 21.384 24.523 27.975 31.772 20.655 24.138 28.029 32.393 37.280 23.044 27.271 32.089 37.581 43.842 25.732 30.850 36.786 43.672 5 51.659 72 15 16 17 18 19 20 17.258 18.430 19.615 20.811 22.019 18.639 20.012 21.412 22.841 24.297 20.157 21.762 23.414 25.117 26.870 21.825 23.657 23.698 25.840 25.645 28.132 27.671 30.539 29.778 33.066 25.673 28.213 30.906 33.760 36.786 27.888 30.840 33.999 37.379 40.995 30.324 33.750 37.450 41.446 45.762 33.003 36.974 41.301 46.018 51.160 35.950 40.545 45.599 51.159 57.275 42.753 48.884 54.750 63.440 72.052 50.980 59.118 68.934 78.969 91.025 60.9258 71.673 109 84.140 128 98.603 154 115.370 186 25 28.243 32.030 36.459 41.646 47.727 54.865 63.249 73.106 84.701 98.347 133.33 181.87 249.210 471. 30 34.785 40.568 47.575 56.085 66.439 79.058 94.461 113.283 136.308 164.494 241.333 356.878 530.310 1181