You contribute $1,500 annually to a retirement account for eleven 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 $1,500 a year until retirement at age 65 (20 years). You both earn 10 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 $ .

Use a financial calculator or a program such as Excel to answer the questions. Round your answers to the nearest whole number.

You purchase a stock for $11,000 and collect $500 at the end of each year in dividends. You sell the stock for $12,000 after six years. What was the annual return on your $11,000 investment? %

You purchase a building for $800,000, collect annual rent (after expenses) of $100,000, and sell the building for $950,000 after four years. What is the annual return on this investment? %

You buy a stock for $1,000 and expect to sell it for $850 after six years but also expect to collect dividends of $100 a year. Calculate the return on this investment and prove that it is less than 9 percent. %

Interest Factors for the Present Value of an Annuity of One Dollar Time Period year) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 10.990 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 2 1.970 1.942 1.913 1.886 1.859 1.833 1.8081.783 1.759 1.736 1.690 1.647 1.605 1.566 .528 1.457 1.392 1.332 1.276 3 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 1.674 4 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 1.966 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 6 5.795 5.601 5.417 5.242 5.076 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 7 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 2678 2.455 8 7.652 7.325 7.020 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 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.2475.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 10 9.471 8.983 8.530 811 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 11 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 2.978 2.683 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 13 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6.424 5.842 5.342 4.910 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 7.786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 15 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 6.974 6.265 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 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 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 8.365 7.366 6.550 5.877 5.316 4.844 4.097 3.539 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 3.546 3.113 2.772 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 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 One Dollar Time Period year) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 1 1.010 1.020 030 1.040 1.050 060 070 080 1.090 1.100 .120 .140 1.150 1.160 .180 1.200 2 .020 1.040 .061 1.082 1.102 .124 1.145 .166 188 .210 1.254 1300 322 1.346 .39 .440 3 1.030 1.061 1.093 1.125 1.158 .191 225 1.260 1295 1.331 1.405 1482 1.521 1.561 643 1.728 4 1.041 1.082 1.126 1.170 1.216 .262 .311 .360 1.412 464 .574 1.689 1.749 1.811 .939 2.074 5 1.051 1.104 1.159 1.217 1.276 1.338 1.403 469 .539 .611 .762 1.925 2011 2.100 2.288 2.488 6 1.062 1.126 1.194 1.265 1.340 1.419 .501 .587 .677 772 1974 2.195 2.313 2.436 2.697 2.986 7 1.072 1.149 1.230 1.316 1.407 .504 1606 1.714 1.828 1.949 2.211 2.502 2.660 2.826 3.186 3.583 8 1.083 1.172 1.267 1.369 1.477 .594 1.718 .85 1.993 2.144 2.476 2.853 3.059 3.278 3.759 4.300 9 1.094 1.195 1.305 1.423 .55 .689 1838 1.999 2.172 2.358 2.773 3.252 3.518 3.803 4.436 5.160 10 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4.046 4.411 5.234 6.192 11 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 5.17 6.176 7.430 12 1.127 1.268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 5.936 7.287 8.916 13 1.138 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 4.363 5.492 6.153 6.886 8.5 10.699 14 .149 1.319 1.513 1.732 1.980 2.261 2.579 2.937 3.342 3.797 4.887 6.261 7.076 7.988 10.147 12.839 15 1.16 1.346 1.558 1.801 2.079 2.397 2.759 3.172 3.642 4.177 5.474 7.138 8.137 9.266 1.973 15.407 16 1.173 1.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.137 9.358 10.748 14.129 18.488 17 1.184 1.400 1.653 1948 2.292 2.693 3.159 3.700 4.328 5.054 6.866 9.276 10.761 12.468 16.672 22.186 18 1.196 1.428 1.702 2.026 2.407 2.854 3.380 3.996 4.717 5.560 7.690 10.575 12.375 14.463 9.673 26.623 19 1.208 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.613 12.056 14.232 16.777 23.214 31.948 20 1.220 1.486 1.806 2.191 2.653 3.207 3.870 4.661 5.604 6.728 9.646 13.743 16.367 19.461 27.393 38.337 2 25 1.282 1.641 2.094 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 1.811 2.427 3.243 4.322 5.743 7.612 10.063 13.268 17.449 29.960 50.950 66.212 85.850 143.370 237.370 Interest Factors for the Future Value of an Annuity of One Dollar me Period e.g., year) 1% 2% 3% 4% 5% 6% 8% 9% 10% 12% 14% 16% 20% 1.000 000 1.000 1.000 .000 1.000 1.000 1.000 1.000 1.000 000 1000 .000 1.000 2 2.010 2.020 .030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.120 2.140 2.160 2.200 3 3.030 3.060 3.091 3.122 3.152 3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.506 3.640 4 4.060 4.122 4.184 4.246 4.310 4.375 4.440 4.506 4.573 4.641 4.770 4.921 5.067 5.368 5.101 5.204 5.309 5.416 5.526 5.637 5.75 5.867 5.985 6.105 6.353 6.610 6.877 7.442 6 6.152 6.308 6.468 6.633 6.802 6.975 7.153 7.336 7.523 7.716 8.115 8.536 8.978 9.930 7.214 7434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 10.089 10.730 11.413 12.915 8 8.286 8.583 8.89 9.214 9.549 9.897 10.260 10.637 .028 11.436 2.300 13.233 14.240 16.499 9 9.369 9.755 .159 10.583 11.027 11.491 11.978 2.488 13.021 13.579 14.776 6.085 17.518 20.798 10 10.462 0.950 11.464 2.006 12.578 13.18 13.816 14.487 15.193 15.937 17.549 19.337 21.321 25.958 11 11.567 .169 12.808 13.486 14.207 14.972 15.784 16.645 17.560 18.531 20.65523.044 25.732 32.150 12 12.683 13.412 14.192 15.026 15.917 16.870 17.888 18.977 20.141 21.384 24.138 27.271 30.850 39.580 13 13.809 14.680 15.618 6.627 17.713 18.882 20.1421.495 22.953 24.523 28.029 32.089 36.786 48.496 14 14.947 5.974 7.086 18.292 19.599 21.051 22.550 24.215 26.019 27975 32.39337.581 43.672 59.195 15 16.097 17.293 18.599 20.024 21.579 23.276 25.129 27152 29.361 31.772 37.280 43.842 51.659 72.035 16 17.258 18.639 20.157 21.825 23.657 25.673 27.888 30.324 33.003 35.950 7550.980 60.925 87.442 17 18.430 20.012 21.762 23.698 25.840 28.213 30.840 33.750 36.974 40.545 48.884 59.118 71.673 105.93 18 19.615 21.412 23.414 25.645 28.132 30.906 33.999 37.450 41.301 45.599 55.750 68.934 84.140 128.11 19 20.811 22.84 25.117 27.671 30.539 33.760 37.379 41.446 46.018 59 63.440 78.969 98.603 154.74 20 22.019 24.297 26.870 29.778 33.066 36.786 40.995 45.762 51.160 57.275 72.052 91.025 115.370 186.68 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 47.575 56.085 66.439 79.058 94.461 113.283 136.308 164.494 241.333 356.878 530.310 1181.8