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 Future Value of One Dollar Time Period 10% 14% year) 1 2 3 4 5 19 2% 3% 5% 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 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.051 1.104 1.159 1.217 1.276 1.338 1403 89 1.080 1.166 1.260 1360 1.469 9% 1.090 1.188 1.295 1.412 1.539 129 1.120 1.254 1.405 1.574 1.762 1.100 1.210 1.331 1.464 1.611 15% 1.150 1.322 1.521 1.749 2011 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1392 1.643 1.939 2.288 1.225 20% 1.200 1.440 1/28 2.074 2.488 6 7 8 9 10 1.062 1.126 1.194 1.265 1.340 1.419 1501 1.072 1.149 1.230 1.316 1.407 1.504 1606 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 1838 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 4040 2.436 2.826 3.278 3.803 4.411 2.700 3.186 3.759 4.436 5.234 2.986 3.583 4.300 5.160 6.192 11 12 13 1.116 1.243 1.384 1.539 1.7101.898 2.105 1.127 1.268 1.426 1.601 1.796 2.012 2.252 1.138 1.294 1.469 1665 1.886 2.133 2.410 1.149 1319 1.513 1.732 1.980 2.261 2.579 1.161 1346 1.558 1.801 2.079 2.297 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 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 15 16 17 18 19 20 1.172 1.373 1.605 1873 2.183 2540 2.952 1.184 1.400 1.653 1948 2.292 2.693 3.159 1.196 1.428 1.702 2.026 2.407 2.854 3.380 1.208 1.457 1.754 2.107 2.527 3.026 3.617 1.220 1.486 1.806 2.191 2.653 3.207 3.870 3.426 3.700 3.996 4.316 4.661 3.970 4.328 4.717 5.142 5.604 4.595 5.054 5.560 6.116 6.728 6.130 8.137 6.866 9.276 7.690 10.575 8.613 12.056 9.646 13.743 9.358 10.761 12.375 14.232 16.367 10.748 12.468 14.463 16.777 19.461 14.129 16.672 19.673 23.214 27.393 18.488 22.186 26.623 31.948 38.337 25 1.282 16412094 2.666 3.386 4.292 5.427 6.848 8.623 10.835 17.000 26.462 32 919 40.874 62.688 95 396 30 1.348 1811 2.427 3.243 4.322 5.743 7612 10.063 13.268 17.449 29.960 50.950 66.212 85 850 143370 237370 Interest Factors for the Future Value of an Annuity of One Dollar Time Period 79 1 2 3 4 5 1.000 2010 3.030 4,060 5.101 2% 1.000 2.020 3.060 4.122 5.204 3% 1000 2.030 3.091 4.184 5.309 1.000 2.040 3.122 4.246 5.416 5% 1.000 2.050 3.152 4.310 5.526 64 1.000 2.060 3.184 4 375 5.637 1.000 2.070 3.215 4.440 5.751 1.000 2.080 3.246 4.506 5.867 9% 1.000 2.090 3278 4573 5985 10% 1.000 2.100 3.310 4.641 6.105 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 6.877 205 1.000 2.200 3.640 5.368 7.442 6 7 8 9 10 6.152 7214 8.286 6.308 7434 8.583 9.755 10.950 6.468 7662 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 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 7.716 9.200 9.487 11.028 11.436 13.021 13.579 15.193 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 9.930 12.915 16.499 20.798 25.958 9.369 10.462 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 14.192 15.618 17.086 18599 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 22953 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 32.150 30.850 39.580 36.786 48.496 43.672 59.195 51.659 72.035 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 23.698 25.645 27671 29.778 22.657 25.840 28.132 30.539 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 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 32.030 36.459 41.646 47.727 54.865 63.249 73.106 84.701 98.347 133.33 181.87 249.210 471.98 30 34.785 40.568 47575 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 Present Value of an Annuity of One Dollar Time Period leg year 1 2 3 4 5 19 2% 3% 5% 6% 94 10% 12% 16% 18% 20% 24% 28% 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 0.833 0.806 0.781 0.758 0.735 1.970 1.942 1.913 1.886 1859 1.833 1.808 1.783 1.759 1.736 1.690 1647 1.605 1.566 1528 1.457 1392 1.332 1276 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1.981 1.868 1.766 1674 3.902 3.808 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 4.580 4.452 4.329 4.212 4.100 3.9933.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 6 7 8 9 10 5.795 5.601 5.417 5.2425.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 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 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7.652 7.325 7020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3682 3.269 2930 2.650 11 12 13 14 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2978 2.683 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7536 7.1616.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 12.134 11.348 10.6359.986 9.394 8.534 8.358 7904 7487 7103 6.424 5.842 5.342 4.910 4.5333.912 3.427 3.040 2.727 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2740 13.865 12.849 11.938 11.118 10 380 9.712 9.108 8.559 8,060 7.606 6.811 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 7.824 6974 6.265 5.669 5.1624.730 4.003 3.503 3088 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 4.7754.059 3.518 3.097 2.763 18 16 398 14.992 13.754 12 659 11.690 10.828 10.05993728.756 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 4.097 3539 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 74696.623 5.9295.353 4.870 4.110 3.546 3.113 2.772 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.8239.077 7843 6873 6.097 5.467 4.948 4.147 2.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15 373 13.765 12.409 11.258 10.274 9.4278.055 7.003 6.177 5.517 4.9794.160 3.569 3.124 2778