Janine is 35 and has a good job at a biotechnology company. Janine estimates that she will need $935,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $28,000 a year. (She expects that Social Security will pay her an additional $16,000 a year.) She currently has $2,000 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 12 percent, and she plans to leave it untouched until she retires at age 65. How much money will Janine have to accumulate in her companys 401(k) plan over the next 30 years in order to reach her retirement income goal?
Exhibit 1-B Future Value (Compounded Sum) of \$1 Paid In at the End of Each Period for a Given Number of Time Periods (an Annuity) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|} \hline Period & 1% & 2% & 3% & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% \\ \hline 1 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 \\ \hline 2 & 2.010 & 2.020 & 2.030 & 2.040 & 2.050 & 2.060 & 2.070 & 2.080 & 2.090 & 2.100 & 2.110 \\ \hline 3 & 3.030 & 3.060 & 3.091 & 3.122 & 3.153 & 3.184 & 3.215 & 3.246 & 3.278 & 3.310 & 3.342 \\ \hline 4 & 4.060 & 4.122 & 4.184 & 4.246 & 4.310 & 4.375 & 4.440 & 4.506 & 4.573 & 4.641 & 4.710 \\ \hline 5 & 5.101 & 5.204 & 5.309 & 5.416 & 5.526 & 5.637 & 5.751 & 5.867 & 5.985 & 6.105 & 6.228 \\ \hline 6 & 6.152 & 6.308 & 6.468 & 6.633 & 6.802 & 6.975 & 7.153 & 7.336 & 7.523 & 7.716 & 7.913 \\ \hline 7 & 7.214 & 7.434 & 7.662 & 7.898 & 8.142 & 8.394 & 8.654 & 8.923 & 9.200 & 9.487 & 9.783 \\ \hline 8 & 8.286 & 8.583 & 8.892 & 9.214 & 9.549 & 9.897 & 10.260 & 10.637 & 11.028 & 11.436 & 11.859 \\ \hline 9 & 9.369 & 9.755 & 10.159 & 10.583 & 11.027 & 11.491 & 11.978 & 12.488 & 13.021 & 13.579 & 14.164 \\ \hline 10 & 10.462 & 10.950 & 11.464 & 12.006 & 12.578 & 13.181 & 13.816 & 14.487 & 15.193 & 15.937 & 16.722 \\ \hline 11 & 11.567 & 12.169 & 12.808 & 13.486 & 14.207 & 14.972 & 15.784 & 16.645 & 17.560 & 18.531 & 19.561 \\ \hline 12 & 12.683 & 13.412 & 14.192 & 15.026 & 15.917 & 16.870 & 17.888 & 18.977 & 20.141 & 21.384 & 22.713 \\ \hline 13 & 13.809 & 14.680 & 15.618 & 16.627 & 17.713 & 18.882 & 20.141 & 21.495 & 22.953 & 24.523 & 26.212 \\ \hline 14 & 14.947 & 15.974 & 17.086 & 18.292 & 19.599 & 21.015 & 22.550 & 24.215 & 26.019 & 27.975 & 30.095 \\ \hline 15 & 16.097 & 17.293 & 18.599 & 20.024 & 21.579 & 23.276 & 25.129 & 27.152 & 29.361 & 31.772 & 34.405 \\ \hline 16 & 17.258 & 18.639 & 20.157 & 21.825 & 23.657 & 25.673 & 27.888 & 30.324 & 33.003 & 35.950 & 39.190 \\ \hline 17 & 18.430 & 20.012 & 21.762 & 23.698 & 25.840 & 28.213 & 30.840 & 33.750 & 36.974 & 40.545 & 44.501 \\ \hline 18 & 19.615 & 21.412 & 23.414 & 25.645 & 28.132 & 30.906 & 33.999 & 37.450 & 41.301 & 45.599 & 50.396 \\ \hline 19 & 20.811 & 22.841 & 25.117 & 27.671 & 30.539 & 33.760 & 37.379 & 41.446 & 46.018 & 51.159 & 56.939 \\ \hline 20 & 22.019 & 24.297 & 26.870 & 29.778 & 33.066 & 36.786 & 40.995 & 45.762 & 51.160 & 57.275 & 64.203 \\ \hline 25 & 28.243 & 32.030 & 36.459 & 41.646 & 47.727 & 54.865 & 63.249 & 73.106 & 84.701 & 98.347 & 114.413 \\ \hline 30 & 34.785 & 40.568 & 47.575 & 56.085 & 66.439 & 79.058 & 94.461 & 113.283 & 136.308 & 164.494 & 199.021 \\ \hline 40 & 48.886 & 60.402 & 75.401 & 95.026 & 120.800 & 154.762 & 199.635 & 259.057 & 337.882 & 442.593 & 581.826 \\ \hline 50 & 64.463 & 84.579 & 112.797 & 152.667 & 209.348 & 290.336 & 406.529 & 573.770 & 815.084 & 1,163.909 & 1,668.771 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|} \hline Period & 12% & 13% & 14\% & 15% & 16% & 17% & 18% & 19\% & 20% & 25% & 30% \\ \hline 1 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 \\ \hline 2 & 2.120 & 2.130 & 2.140 & 2.150 & 2.160 & 2.170 & 2.180 & 2.190 & 2.200 & 2.250 & 2.300 \\ \hline 3 & 3.374 & 3.407 & 3.440 & 3.473 & 3.506 & 3.539 & 3.572 & 3.606 & 3.640 & 3.813 & 3.990 \\ \hline 4 & 4.779 & 4.850 & 4.921 & 4.993 & 5.066 & 5.141 & 5.215 & 5.291 & 5.368 & 5.766 & 6.187 \\ \hline 5 & 6.353 & 6.480 & 6.610 & 6.742 & 6.877 & 7.014 & 7.154 & 7.297 & 7.442 & 8.207 & 9.043 \\ \hline 6 & 8.115 & 8.323 & 8.536 & 8.754 & 8.977 & 9.207 & 9.442 & 9.683 & 9.930 & 11.259 & 12.756 \\ \hline 7 & 10.089 & 10.405 & 10.730 & 11.067 & 11.414 & 11.772 & 12.142 & 12.523 & 12.916 & 15.073 & 17.583 \\ \hline 8 & 12.300 & 12.757 & 13.233 & 13.727 & 14.240 & 14.773 & 15.327 & 15.902 & 16.499 & 19.842 & 23.858 \\ \hline 9 & 14.776 & 15.416 & 16.085 & 16.786 & 17.519 & 18.285 & 19.086 & 19.923 & 20.799 & 25.802 & 32.015 \\ \hline 10 & 17.549 & 18.420 & 19.337 & 20.304 & 21.321 & 22.393 & 23.521 & 24.709 & 25.959 & 33.253 & 42.619 \\ \hline 11 & 20.655 & 21.814 & 23.045 & 24.349 & 25.733 & 27.200 & 28.755 & 30.404 & 32.150 & 42.566 & 56.405 \\ \hline 12 & 24.133 & 25.650 & 27.271 & 29.002 & 30.850 & 32.824 & 34.931 & 37.180 & 39.581 & 54.208 & 74.327 \\ \hline 13 & 28.029 & 29.985 & 32.089 & 34.352 & 36.786 & 39.404 & 42.219 & 45.244 & 48.497 & 68.760 & 97.625 \\ \hline 14 & 32.393 & 34.883 & 37.581 & 40.505 & 43.672 & 47.103 & 50.818 & 54.841 & 59.196 & 86.949 & 127.913 \\ \hline 15 & 37.280 & 40.417 & 43.842 & 47.580 & 51.660 & 56.110 & 60.965 & 66.261 & 72.035 & 109.687 & 167.286 \\ \hline 16 & 42.753 & 46.672 & 50.980 & 55.717 & 60.925 & 66.649 & 72.939 & 79.850 & 87.442 & 138.109 & 218.472 \\ \hline 17 & 48.884 & 53.739 & 59.118 & 65.075 & 71.673 & 78.979 & 87.068 & 96.022 & 105.931 & 173.636 & 285.014 \\ \hline 18 & 55.750 & 61.725 & 68.394 & 75.836 & 84.141 & 93.406 & 103.740 & 115.266 & 128.117 & 218.045 & 371.518 \\ \hline 19 & 63.440 & 70.749 & 78.969 & 88.212 & 98.603 & 110.285 & 123.414 & 138.166 & 154.740 & 273.556 & 483.973 \\ \hline 20 & 72.052 & 80.947 & 91.025 & 102.444 & 115.380 & 130.033 & 146.628 & 165.418 & 186.688 & 342.945 & 630.165 \\ \hline 25 & 133.334 & 155.620 & 181.871 & 212.793 & 249.214 & 292.105 & 342.603 & 402.042 & 471.981 & 1,054.791 & 2,348.803 \\ \hline 30 & 241.333 & 293.199 & 356.787 & 434.745 & 530.312 & 647.439 & 790.948 & 966.712 & 1,181.882 & 3,227.174 & 8,729.985 \\ \hline 40 & 767.091 & 1,013.704 & 1,342.025 & 1,779.090 & 2,360.757 & 3,134.522 & 4,163.213 & 5,529.829 & 7,343.858 & 30,088.655 & 120,392.883 \\ \hline 50 & 2,400.018 & 3,459.507 & 4,994.521 & 7,217.716 & 10,435.649 & 15,089.502 & 21,813.094 & 31,515.340 & 45,497.191 & 280,255.693 & 1,659,760.743 \\ \hline \end{tabular} Exhibit 1-D Present Value of $1 Received at the End of Each Period for a Given Number of Time Periods (an Annuity) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline Period & 1% & 2% & 3% & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% \\ \hline 1 & 0.990 & 0.980 & 0.971 & 0.962 & 0.952 & 0.943 & 0.935 & 0.926 & 0.917 & 0.909 & 0.901 & 0.893 \\ \hline 2 & 1.970 & 1.942 & 1.913 & 1.886 & 1.859 & 1.833 & 1.808 & 1.783 & 1.759 & 1.736 & 1.713 & 1.690 \\ \hline 3 & 2.941 & 2.884 & 2.829 & 2.775 & 2.723 & 2.673 & 2.624 & 2.577 & 2.531 & 2.487 & 2.444 & 2.402 \\ \hline 4 & 3.902 & 3.808 & 3.717 & 3.630 & 3.546 & 3.465 & 3.387 & 3.312 & 3.240 & 3.170 & 3.102 & 3.037 \\ \hline 5 & 4.853 & 4.713 & 4.580 & 4.452 & 4.329 & 4.212 & 4.100 & 3.993 & 3.890 & 3.791 & 3.696 & 3.605 \\ \hline 6 & 5.795 & 5.601 & 5.417 & 5.242 & 5.076 & 4.917 & 4.767 & 4.623 & 4.486 & 4.355 & 4.231 & 4.111 \\ \hline 7 & 6.728 & 6.472 & 6.230 & 6.002 & 5.786 & 5.582 & 5.389 & 5.206 & 5.033 & 4.868 & 4.712 & 4.564 \\ \hline 8 & 7.652 & 7.325 & 7.020 & 6.733 & 6.463 & 6.210 & 5.971 & 5.747 & 5.535 & 5.335 & 5.146 & 4.968 \\ \hline 9 & 8.566 & 8.162 & 7.786 & 7.435 & 7.108 & 6.802 & 6.515 & 6.247 & 5.995 & 5.759 & 5.537 & 5.328 \\ \hline 10 & 9.471 & 8.983 & 8.530 & 8.111 & 7.722 & 7.360 & 7.024 & 6.710 & 6.418 & 6.145 & 5.889 & 5.650 \\ \hline 11 & 10.368 & 9.787 & 9.253 & 8.760 & 8.306 & 7.887 & 7.499 & 7.139 & 6.805 & 6.495 & 6.207 & 5.938 \\ \hline 12 & 11.255 & 10.575 & 9.954 & 9.385 & 8.863 & 8.384 & 7.943 & 7.536 & 7.161 & 6.814 & 6.492 & 6.194 \\ \hline 13 & 12.134 & 11.348 & 10.635 & 9.986 & 9.394 & 8.853 & 8.358 & 7.904 & 7.487 & 7.103 & 6.750 & 6.424 \\ \hline 14 & 13.004 & 12.106 & 11.296 & 10.563 & 9.899 & 9.295 & 8.745 & 8.244 & 7.786 & 7.367 & 6.982 & 6.628 \\ \hline 15 & 13.865 & 12.849 & 11.938 & 11.118 & 10.380 & 9.712 & 9.108 & 8.559 & 8.061 & 7.606 & 7.191 & 6.811 \\ \hline 16 & 14.718 & 13.578 & 12.561 & 11.652 & 10.838 & 10.106 & 9.447 & 8.851 & 8.313 & 7.824 & 7.379 & 6.974 \\ \hline 17 & 15.562 & 14.292 & 13.166 & 12.166 & 11.274 & 10.477 & 9.763 & 9.122 & 8.544 & 8.022 & 7.549 & 7.120 \\ \hline 18 & 16.398 & 14.992 & 13.754 & 12.659 & 11.690 & 10.828 & 10.059 & 9.372 & 8.756 & 8.201 & 7.702 & 7.250 \\ \hline 19 & 17.226 & 15.678 & 14.324 & 13.134 & 12.085 & 11.158 & 10.336 & 9.604 & 8.950 & 8.365 & 7.839 & 7.366 \\ \hline 20 & 18.046 & 16.351 & 14.877 & 13.590 & 12.462 & 11.470 & 10.594 & 9.818 & 9.129 & 8.514 & 7.963 & 7.469 \\ \hline 25 & 22.023 & 19.523 & 17.413 & 15.622 & 14.094 & 12.783 & 11.654 & 10.675 & 9.823 & 9.077 & 8.422 & 7.843 \\ \hline 30 & 25.808 & 22.396 & 19.600 & 17.292 & 15.372 & 13.765 & 12.409 & 11.258 & 10.274 & 9.427 & 8.694 & 8.055 \\ \hline 40 & 32.835 & 27.355 & 23.115 & 19.793 & 17.159 & 15.046 & 13.332 & 11.925 & 10.757 & 9.779 & 8.951 & 8.244 \\ \hline 50 & 39.196 & 31.424 & 25.730 & 21.482 & 18.256 & 15.762 & 13.801 & 12.233 & 10.962 & 9.915 & 9.042 & 8.304 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline Period & 13% & 14% & 15% & 16% & 17% & 18% & 19% & 20% & 25% & 30% & 35% & 40% & 50% \\ \hline 1 & 0.885 & 0.877 & 0.870 & 0.862 & 0.855 & 0.847 & 0.840 & 0.833 & 0.800 & 0.769 & 0.741 & 0.714 & 0.667 \\ \hline 2 & 1.668 & 1.647 & 1.626 & 1.605 & 1.585 & 1.566 & 1.547 & 1.528 & 1.440 & 1.361 & 1.289 & 1.224 & 1.111 \\ \hline 3 & 2.361 & 2.322 & 2.283 & 2.246 & 2.210 & 2.174 & 2.140 & 2.106 & 1.952 & 1.816 & 1.696 & 1.589 & 1.407 \\ \hline 4 & 2.974 & 2.914 & 2.855 & 2.798 & 2.743 & 2.690 & 2.639 & 2.589 & 2.362 & 2.166 & 1.997 & 1.849 & 1.605 \\ \hline 5 & 3.517 & 3.433 & 3.352 & 3.274 & 3.199 & 3.127 & 3.058 & 2.991 & 2.689 & 2.436 & 2.220 & 2.035 & 1.737 \\ \hline 6 & 3.998 & 3.889 & 3.784 & 3.685 & 3.589 & 3.498 & 3.410 & 3.326 & 2.951 & 2.643 & 2.385 & 2.168 & 1.824 \\ \hline 7 & 4.423 & 4.288 & 4.160 & 4.039 & 3.922 & 3.812 & 3.706 & 3.605 & 3.161 & 2.802 & 2.508 & 2.263 & 1.883 \\ \hline 8 & 4.799 & 4.639 & 4.487 & 4.344 & 4.207 & 4.078 & 3.954 & 3.837 & 3.329 & 2.925 & 2.598 & 2.331 & 1.922 \\ \hline 9 & 5.132 & 4.946 & 4.772 & 4.607 & 4.451 & 4.303 & 4.163 & 4.031 & 3.463 & 3.019 & 2.665 & 2.379 & 1.948 \\ \hline 10 & 5.426 & 5.216 & 5.019 & 4.833 & 4.659 & 4.494 & 4.339 & 4.192 & 3.571 & 3.092 & 2.715 & 2.414 & 1.965 \\ \hline 11 & 5.687 & 5.453 & 5.234 & 5.029 & 4.836 & 4.656 & 4.486 & 4.327 & 3.656 & 3.147 & 2.752 & 2.438 & 1.977 \\ \hline 12 & 5.918 & 5.660 & 5.421 & 5.197 & 4.988 & 4.793 & 4.611 & 4.439 & 3.725 & 3.190 & 2.779 & 2.456 & 1.985 \\ \hline 13 & 6.122 & 5.842 & 5.583 & 5.342 & 5.118 & 4.910 & 4.715 & 4.533 & 3.780 & 3.223 & 2.799 & 2.469 & 1.990 \\ \hline 14 & 6.302 & 6.002 & 5.724 & 5.468 & 5.229 & 5.008 & 4.802 & 4.611 & 3.824 & 3.249 & 2.814 & 2.478 & 1.993 \\ \hline 15 & 6.462 & 6.142 & 5.847 & 5.575 & 5.324 & 5.092 & 4.876 & 4.675 & 3.859 & 3.268 & 2.825 & 2.484 & 1.995 \\ \hline 16 & 6.604 & 6.265 & 5.954 & 5.668 & 5.405 & 5.162 & 4.938 & 4.730 & 3.887 & 3.283 & 2.834 & 2.489 & 1.997 \\ \hline 17 & 6.729 & 6.373 & 6.047 & 5.749 & 5.475 & 5.222 & 4.990 & 4.775 & 3.910 & 3.295 & 2.840 & 2.492 & 1.998 \\ \hline 18 & 6.840 & 6.467 & 6.128 & 5.818 & 5.534 & 5.273 & 5.033 & 4.812 & 3.928 & 3.304 & 2.844 & 2.494 & 1.999 \\ \hline 19 & 6.938 & 6.550 & 6.198 & 5.877 & 5.584 & 5.316 & 5.070 & 4.843 & 3.942 & 3.311 & 2.848 & 2.496 & 1.999 \\ \hline 20 & 7.025 & 6.623 & 6.259 & 5.929 & 5.628 & 5.353 & 5.101 & 4.870 & 3.954 & 3.316 & 2.850 & 2.497 & 1.999 \\ \hline 25 & 7.330 & 6.873 & 6.464 & 6.097 & 5.766 & 5.467 & 5.195 & 4.948 & 3.985 & 3.329 & 2.856 & 2.499 & 2.000 \\ \hline 30 & 7.496 & 7.003 & 6.566 & 6.177 & 5.829 & 5.517 & 5.235 & 4.979 & 3.995 & 3.332 & 2.857 & 2.500 & 2.000 \\ \hline 40 & 7.634 & 7.105 & 6.642 & 6.233 & 5.871 & 5.548 & 5.258 & 4.997 & 3.999 & 3.333 & 2.857 & 2.500 & 2.000 \\ \hline 50 & 7.675 & 7.133 & 6.661 & 6.246 & 5.880 & 5.554 & 5.262 & 4.999 & 4.000 & 3.333 & 2.857 & 2.500 & 2.000 \\ \hline \end{tabular} Exhibit 1-C Present Value of $1 to Be Received at the End of a Given Number of Time Periods Exhibit 1-A Future Value (Compounded Sum) of $1 after a Given Number of Time Periods
