RuthAnn is 28 years old and is retiring at the age of 65. When she retires, she estimates that she will need an annual income of $32,523 for 30 years. If RuthAnn contributes 11% of her annual income to a 401(k) paying 7.1% compounded
annually, will she reach her goal for retirement given that her annual income is $36,278.13? If she does not make her goal
then state by what amount she will need to supplement her income. Round all answers to the nearest cent.
a. RuthAnn will meet her annual goal of exactly $32,523 for retirement.
b. RuthAnn will meet her annual goal of $32,523 for retirement with an excess of $20,791.60.
C. RuthAnn will not make her annual goal of $32,523 and will need $1,039.85 to supplement her
yearly income when she retires.
d. RuthAnn will not make her annual goal of $32,523 and will need $10,395.80 to supplement her
yearly income when she retires.