Janine is 35 and has a good job at a biotechnology company. Janine estimates that she will need $876,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $22,000 a year. (She expects that Social Security will pay her an additional $18,500 a year.) She currently has $6,500 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 6 percent, and she plans to leave it untouched until she retires at age 65. How much will Janine's IRA be worth when she needs to start withdrawing money from it when she retires? Use (Exhibit 1-A. Exhibit 1-8. Exhibit 1-C, Exhibit 1-D). Note: Use appropriate factor(s) from the tables provided. Round time value factor to 3 decimal places and answer to 2 decimal places. Answer is complete but not entirely correct. S Future value of IRA 38,667.31
Janine is 35 and has a good job at a biotechnology company. Janine estimates that she will need $876,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $22,000 a year. (She expects that Social Security will pay her an additional $18,500 a year.) She currently has $6,500 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 6 percent, and she plans to leave it untouched until she retires at age 65. How much will Janine's IRA be worth when she needs to start withdrawing money from it when she retires? Use (Exhibit 1-A. Exhibit 1-8. Exhibit 1-C, Exhibit 1-D). Note: Use appropriate factor(s) from the tables provided. Round time value factor to 3 decimal places and answer to 2 decimal places. Answer is complete but not entirely correct. S Future value of IRA 38,667.31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Janine is 35 and has a good job at a biotechnology company. Janine estimates that she will need $876,000 in her total retirement nest
egg by the time she is 65 in order to have retirement income of $22,000 a year. (She expects that Social Security will pay her an
additional $18,500 a year.) She currently has $6,500 in an IRA, an important part of her retirement nest egg. She believes her IRA will
grow at an annual rate of 6 percent, and she plans to leave it untouched until she retires at age 65. How much will Janine's IRA be
worth when she needs to start withdrawing money from it when she retires? Use (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, Exhibit 1-D).
Note: Use appropriate factor(s) from the tables provided. Round time value factor to 3 decimal places and answer to 2 decimal
places.
Answer is complete but not entirely correct.
38,667.31
Future value of IRA
$
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