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3. Cynthia Coleman is reviewing her assets and liabilities. What is her net worth? Assets: Liabilities: Cash in checking account, $1,000 Current unpaid bills, 8800 Cash in savings account, $2,800 Home mortgage unpaid balance. S100.000 Current value of Investments in U.S. savings bonds, S4,000 Auto loan unpaid balance, S3,200 Current value of Investments in stocks & mutual funds, Property Taxes owed. $1,000 $9,700 Current cash value of life insurance, S7,300 Home improvement loan balance, $1,200 Current value Accrued pension benefit, S25,000 Current value of house, S155,000 Current value of furniture and appliances, $8,000 Current value of Jewelry, S600 Current value of automobile, S7,200 4. Calculating an IRA Accumulation. If you plan to retire at the age of 65 and you estimate that you need $1,000,000 in your total retirement nest egg by the time you are 65 in order to have retirement income of $30,000 a year. (you expect that Social Security will pay you an additional $20,000 a year.) Given your current age and start to save for retirement immediately, how much do you need to invest in your IRA account at the end of each year to achieve this $1,000,000 goal if the annual rate of return of your IRA account is 8%? If you wait until the age of 45, how much how much do you need to invest in your IRA account at the end of each year to achieve this $1,000,000 goal if the annual rate of return of your IRA account is 8%? (Hint: Using financial calculator.)

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