Ruby is 25 and has a good job at a biotechnology company. She currently has $12,400 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 8 percent, and she plans to leave it untouched until she retires at age 65. Ruby estimates that she will need $875,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $20,000 a year (she expects that Social Security will pay her an additional $15,000 a year). Using Exhibit 1-A, Exhibit 1-8, Exhibit 1-C. Exhibit 1-D, answer the following questions. a. How much will Ruby's IRA be worth when she needs to start withdrawing money from it when she retires? (Round discount factor to 3 decimal places and final answer to the nearest whole dollar.) Worth of IRA b. How much money will she have to accumulate in her company's 401(k) plan over the next 40 years in order to reach her retirement income goal? (Round discount factor to 3 decimal places and final answer to the nearest whole dollar.) Money to accumulate hibit 1-A Future Value (Compounded Sum) of $1 after a Given Number of Time Periods eriod 1 11 1.010 21 1.020 31 1.030 41 51 68 71 81 = 93 10% 111 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.110. 2 1.020 1.040 1.061 1.082 1.103 1.124 1.145 1.166 1.188 1.210 1.232 3 1.030 1.061 1.093 1.125 1.158 1.191 1.225 1.260 1.295 1.331 1.368 4 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.360 1.412 1.464 1.518 5 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 1.685 6 1.062 1.126 1.194. 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.870 7 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.714 1.828 1.949 2.076 8 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.851 1.993 2.144 2.305 9 1.094 1.15 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.358 2.558 10 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 2.594 2.839 11 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.152 12 1.127 1.268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.498 13 1.138 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 3.883 14 1.149 1.319 1.513 1.732 1.980 2.261 2.579 2.937 3.342 3.797 4.310 15 1.161 1.346 1.558 1.801 2.079 2.397 2.759 3.172 3.642 4.177 4.785 16 1.173 1.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 4.595 5.311 17 1.184 1.400 1.653 1.948 2.292 2.693 3.159 3.700 4.328 5.054 5.895 18 1.196 1.428 1.702 2.026 2.407 2.854 3.380 3.996 4.717 5.560 6.544 19 20 1.208 1.220 1.486 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 7.263 1.806 2.191 2.653 3.207 3.870 4.661 5.604 6.727 8.062 25 1.282 1.641 2.094 2.666 3.386 4.292 5.427 6.848 8.623 10.835 13.585 30 1.348 1.811 2.427 3.243 4.322 5.743 40 1.489 2.208 3.262 4.801 7.040 50 1.645 2.692 4.384 7.107 11.467 10.286 18.420 7.612 14.974 21.725 31.409 29.457 46.902 74.358 10.063 13.268 17.449 22.892 45.259 65.001 117.390 184.570 Period 121 131 141 151 161 171 181 191 201 251 301 1 1.120 1.130 1.140 1.150 1.160 1.170 1.180 1.190 1.200 1.250 1.300 2 1.254 1.277 1.300 1.323 1.346 1.369 1.392 1.416 1.440 1.563 1.690 3 1.405 1.443 1.482 1.521 1.561 1.602 1.643 1.685 1.728 1.953 2.197 4 1.574 1.630 1.689 1.749 1.811 1.874 1.939 2.005 2.074 2.441 2.856 S 1.762 1.842 1.925 2.011 2.100 2.192 2.288 2.386 2.488 3.052 3.713 6 1.974 2.082 2.195 2.313 2.436 2.565 2.700 2.840 2.986 3.815 4.827 7 2.211 2.353 2.502 2.660 2.826 3.001 3.185) 3.379 3.583 4.768 6.276 B 2.476 2.658 2.853 3.059 3.278 3.511 3.759 4.021 4.300 5.960 8.157 9 2.773 3.004 3.252 3.518 3.803 4.108 4.435 4.785 5.160 7.451 10.604 10 3.106 3.395 3.707 4.046 4.411 4.807 5.234 5.696 6.192 9.313 13.786 11 3.479 3.836 4.226 4.652 5.117 5.624 6.176 6.777 7.430 11.642 17.922 12 3.896 4.335 4.818 5.350 5.936 6.580 7.288 8.064 8.916 14.552 23.298 Exhibit 1-B Future Value (Compounded Sum) of $1 Paid In at the End of Each Period for a Given Number of Time Periods (an Annuity) Period 15 = 1 1.000 21 1.000 31 41 51 61 71 81 91 10% 111 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 2.010 2.020 2.030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.110 3 3.030 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.342 4 4.060 4.122 4.184 4.246 4.310 4.375 4.440 4.506 4.573 4.641 4.710 5 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.228 6 6.152 6.308 6.468 6.633 6.802 6.975 7.153 7.336 7.523 7.716 7.913 7 7.214 7.434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 9.783 8 8.286 8.583 8.892 9.214 9.549 9.897 10.260 10.637 11.028 11.436 11.859 9 9.369 9.755 10.169 10.583 11.027 11.491 11.978 12.488 13.0211 13.579 14.164 10. 10.462 10.950 11.464 12.006 12.578 13.101 13.816 14.487 15.193 15.937 16.722 11 11.567 12.169 12.808 13.496 14.207 14.972 15.784 16.645 17.560 18.531 19.561 12 12.683 13.412 14.192 15.026 15.917 16.870 17.888 18.977 20.141 21.384 22.713 13 13.809 14.680 15.618 16.627 17.713 18.882 20.141 21.495 22.953 24.523 26.212 14 14.947 15.974 17.086 18.292 19.599 21.015 22.550 24.215 26.019 27.975 30.095 15 16.097 17.293 18.599 20.024 21.579 23.276 25.129 27.152 29.361 31.772 34.405 16 17.258 18.639 20.157 21.925 23.657 25.673 27.000 30.324 33.003 35.950 39.190 17 18.430 20.012 21.762 23.698 25.840 20.213 30.840 33.750 36.974 40.545 44.501 18 19.615 21.412 23.414 25.645 28.132 30.906 33.999 37.450 41.301 45.599 50.396 19 20.011 22.841 25.117 27.671 30.539 33.760 37.379 41.446 46.010 $1.159 56.939 20 22.019 24.297 26.870 29.778 33.066 36.786 40.995 45.762 51.160 57.275 64.203 25 28.243 32.030 36.459 41-646 47-727 54.865 63.249 73.106 84.701 98.347 114.410 30 34.785 40.588 47.575 56.085 66.439 79.058 94.461 113.280 136.310 164.490 199.020 40 48.886 60.402 75.401 95.026 120.800 50 64.463 84.579 112.800 152.670 209.350 199.640 154.760 406.530 290.340 259.060 815.080 573.770 337.890 442.590 581.830 1,163.900 1,668.800 Period 12 131 141 151 161 17 18% 191 201 251 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 2.120 2.130 2.140 2.150 2.160 2.170 2.180 2.190 2.200 2.250 3 3.374 3.407 3.440 3.473 3.506 3.539 3.572 3.606 3.640 3.013 4 4.779 4.850 4.921 4.993 5.066 5.141 5.215 5.291 5.368 5.766 5 6.353 6.480 6.610 6.742 6.877 7.014 7.154 7.297 7.442 8.207 6 8.115 8.323 8.536 8.754 8.977 9.207 9.442 9.683 9.930 11.259 7 10.089 10.405 10.730 11.067 11.414 11.772 12.142 12.523 12.916 15.073 B 12.300 12.757 13.233 13.727 14.240 14.773 15.327 15.902 16.499 19.842 9 14.776 15.416 16.085 16.786 17.519 18.285 19.086 19.923 20.799 25.802 20 17.549 18.420 19.337 20.304 21.321 22.393 23.521 24.701 25.959 33.253 11 20.655 21.014 23.045 24.349 25.733 27.200 28.755 30.404 32.150 42.566 12 24.133 25.650 27.271 29.002 30.850 32.824 34.931 37.180 39.581 54.208 Period 11 21 31 41 51 61 7 F 91 101 118 129 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683. 0.659 0.636 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.601 0.650 0.621 0.593 0.567 6 0.942 0.088 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 T 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 B 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.306 0.352 0.322 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 12 0.087 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.250 0.229 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 15 0.061 0.743 0.642 0.555 0.401 0.417 0.362 0.315 0.275 0.239 0.209 0.183 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 10 0.036 0.700 0.507 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 19 0.928 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 9.138 0.116 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 25 0.790 0.610 0.470 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 30 0.742 0.552 0.412 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 40 0.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0.011 50 0.608 0.372 0.220 0.141 0.002 0.054 0.034 0.021 0.013 0.009 0.005 0.003 Period 136 14 151 161 17 181 191 201 251 30% 351 401 501 1 0.805 0.877 0.870 0.862 0.855 0.047 0.840 0.833 0.800 0.769 0.741 0.714 0.667 2 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.640 0.592 0.549 0.510 0.444 3 0.693 0.695 0.650 0.641 0.624 0.609 0.593 0.579 0.512 0.455 0.406 0.364 0.296 4 0.613 0.592 0.572 0.552 0.534 0.515 0.499 0.482 0.410 0.350 0.301 0.260 0.198 5 0.543 0.519 0.497 0.476 0.437 0.456 6 0.400 0.456 0.432 0.410 0.390 0.370 0.419 0.352 0.335 0.262 0.402 0.320 0.269 0.223 0.106 0.132 0.207 0.165 0.133 0.000 1 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.210 0.159 0.122 0.095 0.059 " 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.168 0.123 0.091 0.066 0.039 9 0.333 0.300 0.284 0.263 0.243 0.225 0.209 0.194 0.134 0.094 0.067 0.040 0.026 10 0.295 0.270 0.247 0.227 0.208 0.191 0.176 11 0.261 0.237 0.215 0.195 0.178 0.162 12 0.231 0.208 0.109 0.160 0.152 0.137 0.162 0.140 0.135 0.124 0.112 0.107 0.073 0.050 0.035 0.017 0.086 0.069 0.056 0.037 0.025 0.012 0.043 0.027 0.018 0.008 ABY www hibit 1-D Present Value of $1 Received at the End of Each Period for a Given Number of Time Periods (an Annuity) Period 19 21 31 41 51 61 71 81 6 91 10% 114 12 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 2 1.970 1.942 1.913 1.886 1.859 1.8331 1.808) 1.783 1.759 1.736 1.713 1.690 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 8 7.652 7.325 7.020 6.733 6.462 6.210 5.971 5.747 5.535 5.335 5.146 4.968 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 6.207 5.938 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.492 6.194 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6.628 15 13.865 12.849 11.939 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6.811 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 6.974 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.549 7.102 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 7.250 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 7.366 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7.469 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8.422 7.843 30 25.808 22.396 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 40 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 50 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 9.042 8.304 Period 131 141 151 161 17 18% 19 1 0.885 0.877 0.870 0.862 0.855 0.847 0.840 201 0.833 256 301 35 401 50% 0.800 0.769 0.741 0.714 0.667 2 1.660 1.647 1.626 1.605 1.585 1.566 1.547 3 2.361 2.322 2.283 2.246 2.174 2.210 2.140 1.528 1.440 2.106 1.361 1.289 1.224 1.111 1.952 1.016 1.696 1.589 1.407 4 2.974 2.914. 2.855 2.798 2.743 2.690 2.639 2.589 2.362 2.166 1.997 1.849 1.605 5 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.689 2.436 2.220 2.035 1.737 6 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 2.951 2.643 2.385 2.168 1.824 7 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.161 2.002 2.500 2.263 1.883 . 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.329 2.925 2.598 2.331 1.922 9 5.132 4.946 4.772 4.607 4.451 4.303 30 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.031 4.163 4.192 3.463 3.019 2.665 2.379 1.948 3.571 3.092 2.715 2.414 1.965