Ruby is 25 and has a good job at a biotechnology company. She currently has $9,400 in an IRA, an important part of her retirement nest ego. 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 404K) 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) o si era Give Period 01 04 . 901 2 5 8 1000 THE 11 1419 1 WE 7 Het 10 1 I TAT 2.0 0 WE 16 so 10 GREEN 15 1601 251 272 w ME WWE WE UN 101 WE NE 3.750 3173 3. 16 210 IN DE 37 18 ET 14 1655 1 IE 200 RE NE 2015 2101 WE 361 WER WE PO 1941 2014 or 4101 7:12 102 1 DE TI 200 Period 13% 10% ton WEL EL 11 E 3 OPE PEN V 5 2011 21 20 E 7 2150 200 WE 1000 ME WT Pot . ut 10 51 DE 74 1 NES IN 15518 LEN HIE CH 11 T3 LE LED 11th 553.560 0