A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10 plan) that earns 9 percent. Use Appendix A and Appendix C to answer the questions. Round your answers to the nearest dollar. How much will be in the account when the individual retires at the age of 65 if the savings program starts when the person is age 50? $ How much additional money will be in the account if the saver defers retirement until age 70 and continues the contributions? $ How much additional money will be in the account if the saver discontinues the contributions at age 65 but does not retire until age 70? $
A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10 plan) that earns 9 percent. Use Appendix A and Appendix C to answer the questions. Round your answers to the nearest dollar. How much will be in the account when the individual retires at the age of 65 if the savings program starts when the person is age 50? $ How much additional money will be in the account if the saver defers retirement until age 70 and continues the contributions? $ How much additional money will be in the account if the saver discontinues the contributions at age 65 but does not retire until age 70? $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10 plan) that earns 9 percent. Use Appendix A and Appendix C to answer the questions. Round your answers to the nearest dollar.
-
How much will be in the account when the individual retires at the age of 65 if the savings program starts when the person is age 50?
$ -
How much additional money will be in the account if the saver defers retirement until age 70 and continues the contributions?
$ -
How much additional money will be in the account if the saver discontinues the contributions at age 65 but does not retire until age 70?
$
Transcribed Image Text:Interest Factors for the Future Value of One Dollar
Time
Period
(e.g.
year)
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
12%
14%
15%
16%
18%
20%
1.080
1.166
1
1.010 1.020 1.030 1.040 1.050 1.060 1.070
1.090
1.100
1.140
1.160
1.120
1.254
1.150
1.180
1.200
1.440
2
1.020 1.040 1.061 1.082 1.102 1.124 1.145
1.188
1.210
1.300
1.322
1.346
1.392
3
1.030 1.061 1.093 1.125 1.158 1.191 1.225
1.260
1.360
1.295
1.331
1.405
1.482
1.521
1.561
1.643
1.728
2.074
4
1.041 1.082 1.126 1.170 1.216 1.262 1.311
1.412
1.464
1.574
1.689
1.749
1.811
1.939
5
1.051 1.104 1.159 1.217 1.276 1.338 1.403
1.469 1.539
1.611
1.762
1.925
2.011
2.100
2.288
2.488
6
1.062 1.126 1.194 1.265 1.340 1.419 1.501
1.587 1.677
1.772
1.974
2.195
2.313 2.436
2.700
2.986
2.502
3.583
4.300
7
1.072 1.149 1.230 1.316 1.407 1.504 1.606
1.714
1.828
1.949
2.211
2.660
2.826
3.186
8
1.083 1.172 1.267 1.369 1.477 1.594 1.718
1.851
1.993
2.144
2.476
2.853
3.059
3.278
3.759
1.094 1.195 1.305 1.423 1.551 1.689 1.838
1.999
2.172
2.358
2.773
3.252
3.518
3.803
4.411
4.436
5.160
6.192
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
5.234
2.580
2.853
4.652
5.117
5.936
11
1.116 1.243 1.384 1.539 1.710 1.898 2.105
2.332
3.479
4.226
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
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
8.599
10.699
14
1.149 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
1.161 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
11.973
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 1.948 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
19.673
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
38.337
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
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
Transcribed Image Text:Interest Factors for the Future Value of an Annuity of One Dollar
Time
Period
(e.g.,
year)
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
12%
14%
16%
20%
1.000
1.000
1.000
1.000
1.000
1.000
1.000
1.000
1.000
1.000
1.000
1.000
1.000
1.000
2.010
2.020
2.030
2.040
2.050
2.060
2.070
2.080
2.090
2.100
2.120
2.140
2.160
2.200
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
4.060
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
5.751
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
7.434
7.662
7.898
8.142
8.394
8.654
8.923
9.200
9.487
10.089 10.730
11.413
12.915
9.897
11.491
8
8.286
8.583
8.892
9.214
9.549
10.260
10.637
11.028
11.436
12.300
13.233
14.240
16.499
10.583 11.027
12.006 12.578
9
9.369
9.755 10.159
11.978
12.488 13.021
13.579
14.776
16.085
17.518 20.798
10
10.462
10.950
11.464
13.181
13.816
14.487
15.193
15.937
17.549 19.337
21.321 25.958
11
11.567
12.169
12.808 13.486 14.207
14.972
15.784
16.645 17.560
18.531
20.655
23.044
25.732 32.150
12
12.683
16.870
30.850
13.412
14.680
14.192
15.026 15.917
17.888
18.977
20.141
21.384
24.138
27.271
39.580
13
15.618
13.809
14.947
16.627 17.713
18.882
20.141
21.495
22.953 24.523
28.029
32.089
36.786 48.496
14
15.974
17.086
18.292
19.599
21.051
22.550
24.215
26.019 27.975
32.393
37.581
43.672
59.195
15
16.097
17.293
18.599
20.024 21.579
23.276
25.129
27.152
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
42.753
50.980
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
22.841
25.117
27.671
30.539
33.760
37.379
41.446
46.018
51.159
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
1234t5
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