Ruby is 25 and has a good job at a biotechnology company. She currently has $9,600 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 hertotalretirement 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).

a.How much will Ruby's IRA be worth when she needs to start withdrawing money from it when she retires? UseExhibit 1-A.(Round FV factor to 3 decimal places and final answer to the nearest whole dollar.)

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 your answer to the nearest whole dollar.)

Exhibit 1 -A Future Value (Compounded Sum) of $1 after a Given Number of Time Periods Period 2% 3% 5% 6% 10% 11% 1.01 1.11 1.188 1.093 1.125 1.158 1.191 1.225 1.26 1.295 1.368 1.17 1.216 1.31 1.518 1.062 1.194 1.265 1.34 1.419 1.501 1.587 1.677 1.772 1.87 1.072 1.316 1.714 1.828 2.076 co 2.144 2.305 0 1.094 1.195 1.305 1.423 2.172 .358 2.558 10 1.105 1.344 1.898 1.426 1.796 2.012 .252 2.518 2.813 3.138 3.498 13 1.138 1.294 1.886 2.133 3.066 2.261 15 1.346 1.558 1.801 2.079 2.759 3.172 3.642 4.177 4.785 1.873 2.54 3.426 5.311 2.292 2.693 5.895 18 1.196 1.702 2.026 .854 3.38 3.996 4.717 6.544 1.208 1.754 2.107 3.026 3.617 4.316 6.116 20 2.191 8.062 99 1 25 1.282 2.094 2.66 3.386 4.292 5.427 6.848 8.62 10.835 13.585 30 1.348 2.427 3.243 5.743 7.612 10.063 22.8 40 2.208 14.974 45.259 50 1.645 2.692 4.384 7.107 11.467 18.42 29.457 46.902 74.358 117.391 184.565 Period 14% 15% 16% 17% 18% 19% 20% 25% 30% 1.13 1.14 1.16 1.2 2 1.3 1.323 1.405 1.482 1.521 1.561 1.602 1.643 1.685 1.728 2.197 A 1.811 2.074 2.441 on 3.052 3.713 1.974 2.082 2.195 2.313 2.436 2.565 2.7 2.986 3.815 2.211 3.001 3.18 3.379 6.275 3.059 3.278 3.759 4.021 8.157 3.004 3.252 3.518 3.803 4.435 4.785 10.604 0 3.707 5.117 6.176 6.777 17.922 2 3.896 4.335 4.818 5.35 5.936 8.064 8.916 14.552 23.298 3 6.153 0.288 6.261 7.988 9.007 10.147 12.839 39.374 5 5.474 6.254 7.138 8.137 9.266 10.539 11.974 13.59 15.407 28.422 51.186 6 18.4 6.866 10.761 12.468 19.244 44.409 86.504 18 7.69 9.024 10.575 12.375 19.673 22.901 26.623 55.511 112.455 19 8.613 23.214 31.948 146.192 9.646 13.743 16.367 23.106 27.393 190.05 25 21.231 26.462 32.919 40.874 50.658 2.669 77.388 95.396 264.698 705.641 30 39.116 50.95 2619. 533.869 750.378 1469.772 7523.164 50 289.002 450.736 700.233 1083.657 1670.704 2566.215 3927.357 5988.914 9100.438 70064.923 497929.223