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Janine is 35 and has a good job at a biotechnology company. Janine estimates that she will need $940,000 in her total retirement nest egg
Janine is 35 and has a good job at a biotechnology company. Janine estimates that she will need $940,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $26,500 a year. (She expects that Social Security will pay her an additional $23,500 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 5 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.) Exhibit 1-A Future value (compounded sum) of $1 after a given number of time periods
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