Janine is 35 and has a good job at a biotechnology company. Janine estimates that she will need $899,000 in her total retirement nestegg by the time she is 65 in order to have retirement income of $27,500 a year. (She expects that Social Security will pay her anadditional $17,000 a year.) She currently has $4,000 in an IRA, an important part of her retirement nest egg. She believes her IRA willgrow at an annual rate of 9 percent, and she plans to leave it untouched until she retires at age 65. How much money will Janine haveto accumulate in her company's 401(k) plan over the next 30 years in order to reach her retirement income goal? Use Exhibit 1-A(Round time value factor to 3 decimal places. Round intermediate and final answer to 2 decimal places.)401(k) accumulation Exhibit 1-A Future value (compounded sum) of $1 after a given number of time periodsPeriod5%1.0501%1.0101.0201.0302%1.0201.0401.0614%1.0406%1.0601.1243%7%8%9%10%11%1.0301.0611.0931.1261.1591.0901.1881.2951.4121.5391.6771.8281.0801.16611.0701.1001.1101.1451.2101.3311.2321.3681.0821.1031.1581.2161.27631.1251.1911.2251.2601.1701.2171.2621.3381.0411.0821.3111.3601.4641.5181.0511.4031.1041.1261.1491.4691.6111.7721.9491.6851.8702.0762.3052.5586.1.0621.1941.2651.3401.4191.5011.5871.0721.2301.3161.4071.5041.6061.71481.0831.1721.2671.3691.4771.5941.7181.8511.9932.1441.0941.1051.1161.1951.2191.2432.1722.3672.5802.8133.0663.3423.6423.9704.3284.7175.1425.6048.6232.3582.5942.8533.1383.4521.3051.4231.5511.6891.8381.9991.3441.6291.710101.4801.7911.9672.1592.839111.5392.1052.3322.5182.7202.9373.1723.4263.7003.9964.3161.3841.8983.152121.1271.2681.4261.6011.7962.0122.2523.498131.2941.4691.8862.1332.4102.5792.7592.9523.1593.8834.3104.7855.3115.8951.1381.665141.1491.3191.5131.7321.9802.2613.7971.5581.6051.6531.7021.7541.8062.0792.1832.292151.3461.8012.3972.5401.1614.177161.1731.3731.8734.595171.4001.9482.0262.1071.1842.6935.0541.4281.457181.1962.4072.8543.3805.5606.5441.2083.6173.8706.1166.7277.2638.062192.5273.026201.2201.4862.1912.6533.2074.661252.6663.2435.4276.84810.83517.4491.2821.6412.0943.3864.29213.585301.3481.8112.4274.3225.7437.61210.06313.26822.89245.259117.39165.001184.5657.0401.4891.6452.2082.69214.97429.45721.72546.90231.40974.358403.2624.80110.286504.3847.10711.46718.420Period12%13%14%15%16%17%1.1701.3691.60218%19%20%25%30%1.1201.2541.1301.2771.4431.1401.1501.1801.3921.6431.2001.2501.5631.9532.44111.1601.1901.30021.3231.5211.7491.3461.5611.3001.4161.4401.6901.6851.4821.6891.9252.1951.7282.0742.4882.1972.8563.71331.4051.5741.7621.6301.8422.0822.3532.6583.0043.3953.83641.8111.8741.9392.0052.1002.3862.8403.3794.0214.7852.0112.1922.2883.0522.9863.5832.3132.6603.0593.5184.0464.6525.3502.7003.1853.7594.4355.2346.1766.1.9742.4362.5653.8154.8272.2113.0014.7685.9607.451|2.5022.8266.2752.4762.7733.1068.1574.3005.1608.2.8533.2783.5113.2523.8034.10810.6049.31311.64213.78617,92223.29830.28839.374103.7074.4114.8075.6956.1924.2264.8185.4927.4308.91610.69912.83915.407113.4795.1175.6246.777123.8964.3355.9366.5807.2888.06414.5524.3637.6994.8985.5358.59910.14711.97418.19022.73728.4226.1536.8869.59611.42013.590134.8875.474146.2617.0767.9889.0071510.53912.3306.2547.1388.1379.26651.1867.0679.35810.74812.46814.46316.77719.46140.87485.850378.7211670.704166.1308.13714.12916.17218.48835.52766.5429.27610.57512.05619.24422.18686.5046.8667.69044.40955.51169.38986.736264.698177.98610.76114.42616.672189.02410.19712.37514.23216.36716.87919.74823.10650.65819.67323.21427.39322.90126.623112.45527.2528.6139.64631.94838.33895.39619146.1922011.52313.74332.429190.05026.46250.9502517.00021.23132.91962.66977.388705.64129.96093.051289.00239.116132.782450.73666.212267.8641083.657111.065533.8692566.215184.6751051.6685988.9142619.99636118.86530143.371237.376807.794188.884700.233750.3783927.3571469.7729100.4387523.16470064.9234050497929.223

Formula - A=P(1+r/n)nt A is the value at retirement P is the principal, which is the $4,000…

Janine is 35 and has a good job at a biotechnology company. Janine estimates that she will need $899,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $27,500 a year. (She expects that Social Security will pay her an additional $17,000 a year.) She currently has $4,000 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 9 percent, and she plans to leave it untouched until she retires at age 65. How much money will Janine have to accumulate in her company's 401(k) plan over the next 30 years in order to reach her retirement income goal? Use Exhibit 1-A (Round time value factor to 3 decimal places. Round intermediate and final answer to 2 decimal places.) i....................... 401(k) accumulation

Janine is 35 and has a good job at a biotechnology company. Janine estimates that she will need $899,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $27,500 a year. (She expects that Social Security will pay her an additional $17,000 a year.) She currently has $4,000 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 9 percent, and she plans to leave it untouched until she retires at age 65. How much money will Janine have to accumulate in her company's 401(k) plan over the next 30 years in order to reach her retirement income goal? Use Exhibit 1-A (Round time value factor to 3 decimal places. Round intermediate and final answer to 2 decimal places.) i....................... 401(k) accumulation

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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