You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 20 and make the contributions for 15 years. Your twin sister does the same starting at age 25 and makes the contributions for 40 years. Both of you earn 8 percent annually on your investment.
What
amounts will you and your sister have at age 65? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar.
Amount on your account: $
Amount on your sister's account: $
Who has the larger amount at age 65?
the larger amoun
Interest Factors for the Future Value of One Dollar Time Period year) 1 2 3 4 5 1.010 1.020 1020 1.040 1.030 1.061 1.041 1.082 1.051 1.104 5% 1.030 1040 1050 1.061 10821102 1.093 1.125 1.158 1.126 1.170 1.216 1.159 1.217 1276 6% 7% 1060 1.070 1.124 1.145 1.191 1.225 1.262 1.311 1.338 1.403 8% 1080 1.166 1.260 1.360 1.469 9% 10% 1.090 1.100 1.1881.210 1.295 1331 1.412 1.464 1.539 1.611 1.677 1.772 1.828 1.949 1993 2.144 2.172 2.358 2.367 2.594 12% 14% 15% 16% 1.120 1140 1150 1160 1.254 1300 1322 346 1.405 1482 1521 1561 1.574 168917491811 1.762 1925 2011 2.100 1974 2.195 2.313 2.436 2.211 2.502 2.660 2.826 2.476 2853 3.059 3.278 2.7733.252 3.518 3.803 3.106 3.707 4.046 4411 18% 180 2 1643 1939 2.288 2.700 3.186 3.759 4.436 5.234 20% 200 440 1728 2.074 2.488 2.986 3.583 4300 5.160 6.192 1.062 1.126 1.072 1.149 1.083 1.172 1.094 1.195 1.105 1.219 1.194 1.230 1.267 1.305 1.344 1.26 1.316 1.369 1.423 1.480 1.340 1.419 1.501 1.407 1.504 1606 1477 1.594 1718 1.551 1689 1.838 1.629 1.791 1.967 1.587 1714 1.851 1.999 2.159 9 1.116 12 1.127 131.138 1.149 15 1.161 1.243 1268 1.294 1.319 1.346 1.384 1.539 1.710 1.898 2.105 2332 1.426 1601 1.796 2012 2.252 2.518 1.469 1.665 1.886 2.133 2410 2.720 1.513 1.732 1.980 2.261 2.5792.937 1.558 1.801 2.079 2 397 2.759 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 4226 4818 5.492 6.261 7.138 4652 5.350 6.153 7076 8.137 5.117 5.936 6.886 7988 9.266 6.176 7.287 8.599 10.147 11.973 7430 8916 10.699 12.839 15.407 17 18 19 20 1.173 1184 1.196 1.208 1.220 1.373 1.400 1.428 1.457 1.486 1.605 1.873 2.183 1.653 1.948 2.292 1.702 2.026 2.407 1.754 2.107 2.527 1.806 2.191 2.653 2.540 2.952 2.693 3.159 2.854 3.380 3.026 3.617 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 6.130 8.137 9.358 10.748 5.054 6.8669.276 10.761 12468 5.560 7690 10.575 12.375 14.463 6.116 8.613 12.056 14.232 16.777 6.728 9.646 13.74316.367 19.461 10.835 17.000 26.462 32.919 40.874 17.449 29.960 50.950 66.212 85.850 14.129 16,672 19.673 23.214 27.393 18.488 22.186 26.623 31.948 38 337 1.282 1348 1.641 2.094 2.666 3.386 4.292 5.427 1811 2427 3.243 4.3225.743 7612 6.848 8.623 10.063 13.268 2.688 143.370 95.796 237.370 30 WP Interest Factors for the Future Value of an Annuity of One Dollar Time Period 1.000 1.000 3.030 4.060 5.101 3.060 4.122 5.204 1.000 1.000 2030 2040 3.091 3.122 4.1844.246 5.309 5.416 OOOW 1.000 2050 3.152 4.310 5.526 1.000 2060 3.184 4.375 5,637 1.000 2.070 3.215 4.440 5.751 1.000 1.000 2080 2090 3.246 3.278 4.5064573 .867 5.985 10% 1.000 2.100 3.310 4.641 6.105 12% 1000 2.120 3.374 4770 6.353 1000 2.140 3.440 421 6610 1000 2.160 3 506 5.067 6.877 1000 2.200 3640 5368 7442 5 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 7.898 9.214 10.583 12.006 6.802 8.142 9.549 11.027 12.578 6.9757.153 8.394 8.654 9.897 10.260 11.491 11.978 13.181 13.816 7.336 7.523 7.716 8.9239.2009.487 10.637 11.028 11.436 12.488 13.021 13.579 14.487 15.193 15.937 8.115 10.089 12.300 14.776 17.549 8.536 8.9789930 10.730 11.413 12.915 13.23314.240 16.499 16.085 1 7.518 20.798 19.33721.321 25.958 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 18.599 13.486 15.026 16.627 18.292 20.024 14.207 15.917 17.713 19.599 21.579 14.97215.784 16.870 17.888 18.882 20.141 21.05122.550 23.276 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 23.044 25.732 32.150 24.138 27.271 30850 39.580 28.029 32.08936.786 48.496 32.39337581 43.672 59.195 37.280 4384251.659 72.035 15 17.258 18.430 19.615 20.811 22.019 18.639 20.157 20.0122 1.762 21.412 23.414 22.841 25.117 24.297 26.870 21.825 23.698 25.645 27.671 29.778 23.657 25.673 25.840 28.213 28.132 30.906 30.53933.760 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 42.753 50.980 40.545 48.884 59.118 45.599 55.750 68.934 51.15963.440 78.969 57.275 72.05291025 98.347 133.33 181.87 60.925 87.442 71673 105.93 84140 128.11 98.603 154.74 115.370 186.68 249.210 471.98 28.243 32.030 36.459 41.646 63.249 73.106 84.701 47.72754.865 34.785 40.568 47575 56.085 66.439 79.058 94.461 113.283 136 308 164.494 241333356.878530.310 11818 Interest Factors for the Future Value of an Annuity of One Dollar Lime Period (e.g. year) 2% 1.000 1.000 2.0102.020 3.0303.060 4.060 4.122 5.101 5.204 new 3% 1.000 2.030 3.091 4.184 5.309 1.000 2.040 1.000 2.050 2 3.152 4.310 5.5265 1.000 .060 3.184 4.375 .637 8% 1.000 1.000 2.070 2.080 .215 3.246 4.440 4.506 5.7515 .867 3 9% 10% 12% 1.000 1.000 1.000 2.090 2.100 2.120 3.278 3.310 3.374 4.5734.641 4.770 5.985 6.1056,353 1.000 1.000 2.140 2.160 3.440 3.506 4.9215.067 6.610 6.877 1.000 2.200 3.640 5.368 7442 4.246 4.246 5.416 6 8 6.152 7.214 8.286 9.369 10.462 .308 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 1.975 .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 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.5368.978 9.930 10.730 11.413 12915 13.23314.240 16.499 16.085 17518 20.798 19.337 21.321 25.958 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 18.599 13.486 15.026 16.627 18.292 20.024 14.207 15.917 17.718 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 17.258 18.430 19.615 20.811 22.019 18.639 20.012 21.412 22.841 24.297 17.560 18.531 20.655 23.044 25.732 32.150 20.141 21.384 24.138 27.271 30.850 19.580 22.953 24.523 28.029 32.089 36.78648.496 26.019 2797532393 37.581 43.672 59.195 29.361 31.772 37.280 43.84251659 72.035 33.003 35.950 42.753 50.980 60925 87.442 36.974 40.545 48.88459.11871673 1059 41.301 45.599 55.750 68.934 44100 128.11 46.018 51.159 63.440 78.969 98.603 154.74 51.16057.275 72.052 91025 115 370 186.68 84.701 98.347 133.33 181.87 249210471.38 20.157 21.762 23.414 25.117 26.870 21.825 23.698 25.645 27.671 29.778 25.673 28.213 30.906 33.760 36.786 23.657 25.840 28.132 30.539 33.066 27.888 30.840 33.999 37.379 40.995 30.324 33.750 37.450 41.446 45.762 54.865 73.106 63.249 47.727 32.030 36.459 41.646 28.243 66.439 79.058 94.461 113.283 136 308 164.494 241333356.8785303101 47.575 56.085 30 34,78540.568
