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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? $

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 11E
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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.

  1. 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?
    $   

  2. How much additional money will be in the account if the saver defers retirement until age 70 and continues the contributions?
    $   

  3. 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?
    $   

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 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
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
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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