Janine is 45 and has a good job at a biotechnology company. Janine estimates that she will need $886,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $27,000 a year. (She expects that Social Security will pay her an additional $17,000 a year.) She currently has $4,500 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 money will Janine have to accumulate in her company's 401(k) plan over the next 20 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.)

Janine is 45 and has a good job at a biotechnology company. Janine estimates that she will need $886,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $27,000 a year. (She expects that Social Security will pay her an additional $17,000 a year.) She currently has $4,500 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 money will Janine have to accumulate in her company's 401(k) plan over the next 20 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.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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