CH Ruby is 25 and has a good job at a biotechnology company. She currently has $10,800 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 her total retirement 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? Use Exhibit 1-A. (Round FV factor to 3 decimal places and final answer to the nearest whole dollar.) Future value of IRA 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.) Required future value of 401(k) Exhibit 1 -A Future Value (Compounded Sum) of $1 after a Given Number of Time Periods Period 1% 2% 3% 6% 7% 8% 9% 10% 11% 1 101 6% 1 06 102 103 105 104 1082 100 109 2 1.02 1.04 1.061 107 1.145 1.103 1124 1186 1.188 121 1 232 103 1061 1093 1 125 1 158 1 101 1 225 1 26 1 295 1331 1368 4 1041 1082 1.126 1.17 1216 1.262 1.311 1.36 1.412 1.454 1 518 5 1051 1104 1 159 1217 1 276 1338 1.403 1.400 1 539 1611 1 685 6 1.062 1.126 1.194 1 265 1.34 1.419 1501 1.587 1.677 1772 1.B7 1072 1149 123 1 316 1 407 1 304 1 606 1.714 1828 1949 2.075 8 1063 1.172 1 267 1.360 1.477 1 594 1.718 1.851 1993 2.144 9 1094 1.195 1.429 2.305 2558 1.551 1 305 1.314 1.689 1838 1.900 2 172 2358 10 1 105 1219 1 48 1629 1 701 1957 2 150 2367 2.594 2839 11 1.116 1243 1384 1539 1.71 100 2.105 2332 256 2853 12 1 127 1266 1 426 1 601 1 796 2012 2252 2518 2013 3138 3.400 15 1 138 1294 1.450 1.665 2.133 2.41 3.066 3.883 14 1 140 1.319 2.72 2037 1513 1.732 1 OR 2261 2579 3342 3.797 15 1161 1346 1.801 2397 2759 3.172 3.642 4 177 4785 16 1 173 1373 1605 2079 2 163 2292 2 54 2952 397 4595 1873 1948 5 311 17 1 164 1.4 1653 2693 3.150 3.7 5054 5 895 18 1 196 1428 1 702 2026 2 407 2854 3 38 3996 4717 556 19 1208 1457 1754 2 107 2527 3026 3617 1316 5 142 6.116 20 1.486 1800 2 191 2653 3 207 357 4661 5 804 6727 8.062 25 1262 1641 2094 2666 3300 4202 5427 8.623 13 535 10835 17.449 30 1.346 1.811 3243 5743 2 427 3 262 6145 10063 21726 7612 14974 40 13266 31400 1 480 2 200 4 601 704 10206 45.250 65001 50 2692 4304 7 107 11 467 18 42 29.157 46.902 74360 117300 184565 Period 12% 13% 14% 15% 16% 17% 18% 19% 20% 25% 30% 112 113 114 1 15 1 16 117 110 119 12 125 1254 1217 1323 1 346 1 369 1592 1. 1363 TU 1405 1443 1402 1521 1 661 1 602 1643 1 806 1901 2191 Period 12% 13% 14% 15% 16% 17% 18% 19% 20% 1.12 25% 1.13 30% 1.14 1.15 1.16 1.17 1.18 1.19 12 1 25 1.254 1.3 1277 1.3 1.323 1.346 1 369 1 392 1.416 1583 3 1 69 1 405 1.443 1.482 1.521 1.561 1.602 1.643 1 685 1.728 1.983 4 2197 1.574 1.63 1 689 1.749 1.811 1 874 1.999 2005 2074 2441 2856 5 1.762 1 842 1.925 2011 21 2.192 2 288 2.386 2.488 3052 3713 6 1974 2082 2 195 2313 2436 2 565 2.7 2.84 2.986 3.815 7 2211 2.353 2 502 2.66 2.826 3.001 3.185 3379 3.583 4758 5 275 8 2476 2656 2 853 3050 3.278 3 511 3.750 4021 43 595 3.157 9 2.773 3.004 3.252 3.518 3.803 4.108 4.436 4.785 5.16 7.451 10 504 10 3 106 3 395 3 707 4 411 4 807 5234 5 695 6 192 9313 13 786 3.479 3.836 4226 4.652 5.117 5.624 6.176 6.777 11 642 12 3.896 4 335 4 818 5 35 5936 658 7288 a 064 & 916 14552 23 298 13 4 363 4 898 5.492 6 153 6 886 7699 8.599 9 596 10.699 18.19 14 4887 5 535 6.261 7076 30.258 39374 7 908 9007 10 147 11.42 12 839 15 5 474 6 254 7 138 8.137 9 266 10 539 11.974 13.59 15.407 28.422 51 186 16 6.13 7.067 8 137 9.358 10.748 12.33 14. 129 16.172 18.458 35 527 66.542 17 6 366 7 986 9276 10 761 12.466 14426 16 672 19 244 22.186 44409 16504 18 7.69 9.024 10.575 12.375 14.463 16.879 19673 22.901 56.511 112.455 19 8 613 10 197 12 056 14232 16 777 19 748 23 214 27 252 31 940 146 192 20 9.646 11.523 13 743 16 367 19.461 27.393 38 338 36.738 190.05 23 105 50 650 32 429 77388 25 21 231 26 462 32 919 40 874 96 396 705641 30 29.90 39 116 50.95 66 212 85 85 111065 143371 18.4675 237 376 807794 2619.998 93 051 188 884 267 864 378 721 533 369 750 378 1061668 1469772 7523 164 132 762 450 736 36118 865 197929 223 50 289 002 700 233 1083 657 1670 704 2566 215 3927 357 5008 914 9100 438 70064 923