Problem 7-28 You contribute $1,000 annually to a retirement account for seven years and stop making payments at the age of 45. Your twin brother (or sister ... whichever applies) opens an account at age 45 and contributes $1,000 a year until retirement at age 65 (20 years). You both earn 12 percent on your investments. How much can each of you withdraw for 15 years (that is, ages 66 through 80) from the retirement accounts? Use Appendix A. Appendix C, and Appendix D to answer the question. Round your answers to the nearest dollar. You can withdraw $ Your twin can withdraw $ Interest Factors for the Present Value of an Annuity of One Dollar Period rear 2 2 4 5 34 5% 79 SN 10% 12% 14% 16% 18% 20% 24% 28% 32 36% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.862 0.847 0833 0.806 0.781 0.758 0.735 1.970 1.942 1913 1886 1859 1.833 1808 1783 1759 1736 1.690 1647 1.6051566 1.528 1.4571.392 1.332 1.276 2.9412.884 2829 2775 2.723 2.673 2624 2.577 2531 2.487 2402 2322 2.246 2174 2.106 1981 1.868 1.766 1674 3.902 3.80B 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1966 4.853 4.713 4580 4.452 43294212 4.100 2.993 3.890 3.791 3.605 3.433 3.274 3127 2.991 2.745 2.532 2.345 2.181 6 7 8 9 10 5.795 5.601 5417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3685 3.498 3.326 3.020 2.759 2.534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4868 4564 4.288 4039 3812 2605 3.242 2.937 2.678 2.455 7652 7.325 7020 6.733 6.463 6.210 5.971 57475.535 5.335 4968 4639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7435 7108 6.802 6.515 6.2475.985 5.759 5328 49464.607 4.303 4.031 3.566 3.184 2.868 2,603 9.471 8.983 8.530 8.111 7722 7.360 7024 6.710 6.418 6.145 5.650 5.216 4833 4.494 4.192 3.682 3.269 2.930 2.650 11 10.368 9.787 9.253 8.760 8.3067887 7499 7139 6.805 6.495 5988 5.453 5.029 4656 4.327 3.776 3.335 2.978 2.683 12 11.255 10.575 9.954 9.385 8.863 8.384 79437.536 7161 6,814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3013 2.708 13 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7487 7103 6.424 5 842 5.342 4910 4.533 3.912 3.427 3.040 2.727 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7786 7367 6.628 6.002 5.468 5.008 4611 3.962 3.459 3.061 2.740 15 13.865 12 849 11938 11.118 10 380 9.712 9.108 8.559 8060 7606 6811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12 561 11.652 10 838 10.106 9.447 8.851 8.312 7824 6.9746.265 5.669 5.162 4.730 4,003 3.503 3.088 2.758 17 15.562 14 292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.002 7.120 6.373 5.749 5.222 4.775 4.059 3.518 3,097 2.763 18 16.398 14992 13.754 12659 11.690 10.828 10.059 9372 8.756 8.2017.250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 2.767 19 17.226 15,678 14,324 13.134 12.085 11.158 10.336 9.604 8.950 8.3657366 6.550 5.877 5.316 4.844 4.0973.539 3.109 2.770 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.5463.113 2.772 25 22.023 19.523 17413 15 622 14094 12783 11.654 10675 9.823 9.077 7843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4.979 4.160 3.569 3.124 2.778 Interest Factors for the Future Value of an Annuity of One Dollar Time Period leg year) 1 2 3 4 5 19 1000 2010 3.030 4,060 5.101 1.000 2.020 3.060 4.122 5.204 3% 1.000 2030 3.091 4.184 5309 1.000 2040 3.122 4.246 5.416 5% 1.000 2.050 3.152 4.310 5.526 6% 1.000 2.060 3.184 4.375 5.637 1.000 2.070 3.215 4.440 5.751 89 1.000 2.080 3.246 4.506 5.867 9% 1.000 2.090 3.278 4.573 5.985 10% 1.000 2.100 3.310 4.641 6105 12% 1.000 2.120 3.374 4.770 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.067 6.877 20% 1.000 2.200 3.640 5.368 7.442 6 7 8 9 10 6.152 7.214 8.286 9.369 10.462 6.300 7.434 8.583 9.755 10.950 6.468 7,662 8.892 10.159 11.464 6.633 7.898 9.214 10.583 12.006 6.802 8.142 9.549 11.027 12.578 6.975 8394 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 7.716 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 9.920 12.915 16.499 20.798 25.958 11 12 13 14 15 11.567 12.683 13.809 14.947 16.097 12.169 13.412 14.680 15.974 17.293 12808 14.192 15 618 17086 18.599 13.486 15.026 16.627 18.292 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 27975 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 36.785 43,672 51.659 32.150 39.580 48.496 59.195 72.035 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 23.698 25.645 27.671 29.778 23.657 25.673 25.840 28.213 28.132 30.906 30.539 33.760 33.066 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 55.750 63.440 72.052 50.980 59.118 68.934 78.969 91.025 60.925 87.442 71.673 105.93 84.140 128.11 98 603 154.74 115.370 186.68 25 28.243 32030 36.459 41.646 47.727 54.865 63.249 73.106 84.701 98.347 133.33 181.87 249.210 471.98 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 1181.8 Interest Factors for the Future Value of One Dollar Time Period le. 1 2 3 4 5 19 24 3% 4% 6% 79 1.010 1.020 1030 1040 1.050 1.060 1.070 1.020 1040 1.061 1082 1.102 1.124 1.145 1.030 1.061 1,093 1.125 1.158 1.191 1.225 1.041 1.0821126 1.170 1.216 1.262 1.311 1.051 1.104 1.159 1217 1.276 1338 1.403 1.080 1.166 1.260 1.360 1.469 9% 1.090 1.188 1.295 1.412 1.539 10% 1.100 1.210 1.331 1.464 1.611 129 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 15% 1.150 1.322 1.521 1.749 2011 16% 1.160 1346 1.561 1.811 2.100 18% 1.180 1.392 1643 1939 2.288 20% 1.200 1.440 1.728 2.074 2.488 6 7 8 9 10 1.062 1.126 1.194 1.265 1340 1.419 1501 1.072 1.149 1.230 1.316 1.407 1504 1606 1.083 1.1721.267 1.369 1477 1594 1718 1.094 1.195 1.305 1423 1.551 1689 1,838 1.105 1219 1344 1.480 1.629 1791 1.967 1.587 1.714 1851 1.999 2.150 1.677 1.828 1993 2.172 2 367 1.772 1.9.49 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 2313 2.660 3.059 3.518 4046 2.436 2.826 3.278 3.803 4.411 2.700 3.186 3.759 4436 5.234 2.986 3.583 4,300 5.160 6.192 11 12 13 14 15 1.116 1.243 1.384 1.539 1710 1.898 2.105 1.127 1.268 1426 1.601 1.796 2012 2.252 1.138 1.294 1.469 1665 1.886 2.133 2.410 1.149 1319 1.513 1.732 1.980 2261 2.579 1.161 1346 1558 1.801 2079 2.397 2.759 2.332 2.518 2.720 2937 3.172 2.580 2.813 3,066 3342 364 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 4.652 5.350 6.153 7.076 8.137 5.117 5.936 6 886 7988 9.266 6.176 7.287 8.599 10.147 11.973 7.430 8.916 10.699 12.839 15.407 16 17 18 19 20 1.173 1.373 1.605 1.873 2.183 2540 2.952 1.184 1.400 1.653 1948 2.292 2.693 3.159 1.196 1428 1.702 2.026 2407 2.854 3.380 1.200 1.457 1754 2.107 2.527 3.026 3.617 1.220 1.486 1.806 2.191 2653 3.207 3.870 3.426 3.970 3.700 4.328 3.996 4.717 4.316 5.142 4.661 5.600 4.595 6.130 8.137 5.054 6.866 9.276 5.560 7.690 10.575 6.116 8,613 12.056 6.728 9.6406 12242 9.358 10.748 10.761 12.468 12.375 14.463 14 232 16.777 16367 19.461 14.129 16.672 19.673 23.214 27393 18.488 22.186 26.623 31.948 38 337 6 848 32.919 40.874 25 62 688 8.623 10.835 17.000 26.462 95 396 1.22 1641 2.094 2.666 3.386 4.292 5.427 1.348 1811 2.427 3.243 4.3225.743 7612 10.063 13.268 17.449 20.960 50.950 66,212 85.850 143.370 237370