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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
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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.) 401(k) accumulation
Transcribed Image Text: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.) 401(k) accumulation
Exhibit 1-A Future value (compounded sum) of $1 after a given number of time periods Period 5% 1.050 1% 1.010 1.020 1.030 2% 1.020 1.040 1.061 4% 1.040 6% 1.060 1.124 3% 7% 8% 9% 10% 11% 1.030 1.061 1.093 1.126 1.159 1.090 1.188 1.295 1.412 1.539 1.677 1.828 1.080 1.166 1 1.070 1.100 1.110 1.145 1.210 1.331 1.232 1.368 1.082 1.103 1.158 1.216 1.276 3 1.125 1.191 1.225 1.260 1.170 1.217 1.262 1.338 1.041 1.082 1.311 1.360 1.464 1.518 1.051 1.403 1.104 1.126 1.149 1.469 1.611 1.772 1.949 1.685 1.870 2.076 2.305 2.558 6. 1.062 1.194 1.265 1.340 1.419 1.501 1.587 1.072 1.230 1.316 1.407 1.504 1.606 1.714 8 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.851 1.993 2.144 1.094 1.105 1.116 1.195 1.219 1.243 2.172 2.367 2.580 2.813 3.066 3.342 3.642 3.970 4.328 4.717 5.142 5.604 8.623 2.358 2.594 2.853 3.138 3.452 1.305 1.423 1.551 1.689 1.838 1.999 1.344 1.629 1.710 10 1.480 1.791 1.967 2.159 2.839 11 1.539 2.105 2.332 2.518 2.720 2.937 3.172 3.426 3.700 3.996 4.316 1.384 1.898 3.152 12 1.127 1.268 1.426 1.601 1.796 2.012 2.252 3.498 13 1.294 1.469 1.886 2.133 2.410 2.579 2.759 2.952 3.159 3.883 4.310 4.785 5.311 5.895 1.138 1.665 14 1.149 1.319 1.513 1.732 1.980 2.261 3.797 1.558 1.605 1.653 1.702 1.754 1.806 2.079 2.183 2.292 15 1.346 1.801 2.397 2.540 1.161 4.177 16 1.173 1.373 1.873 4.595 17 1.400 1.948 2.026 2.107 1.184 2.693 5.054 1.428 1.457 18 1.196 2.407 2.854 3.380 5.560 6.544 1.208 3.617 3.870 6.116 6.727 7.263 8.062 19 2.527 3.026 20 1.220 1.486 2.191 2.653 3.207 4.661 25 2.666 3.243 5.427 6.848 10.835 17.449 1.282 1.641 2.094 3.386 4.292 13.585 30 1.348 1.811 2.427 4.322 5.743 7.612 10.063 13.268 22.892 45.259 117.391 65.001 184.565 7.040 1.489 1.645 2.208 2.692 14.974 29.457 21.725 46.902 31.409 74.358 40 3.262 4.801 10.286 50 4.384 7.107 11.467 18.420 Period 12% 13% 14% 15% 16% 17% 1.170 1.369 1.602 18% 19% 20% 25% 30% 1.120 1.254 1.130 1.277 1.443 1.140 1.150 1.180 1.392 1.643 1.200 1.250 1.563 1.953 2.441 1 1.160 1.190 1.300 2 1.323 1.521 1.749 1.346 1.561 1.300 1.416 1.440 1.690 1.685 1.482 1.689 1.925 2.195 1.728 2.074 2.488 2.197 2.856 3.713 3 1.405 1.574 1.762 1.630 1.842 2.082 2.353 2.658 3.004 3.395 3.836 4 1.811 1.874 1.939 2.005 2.100 2.386 2.840 3.379 4.021 4.785 2.011 2.192 2.288 3.052 2.986 3.583 2.313 2.660 3.059 3.518 4.046 4.652 5.350 2.700 3.185 3.759 4.435 5.234 6.176 6. 1.974 2.436 2.565 3.815 4.827 2.211 3.001 4.768 5.960 7.451| 2.502 2.826 6.275 2.476 2.773 3.106 8.157 4.300 5.160 8. 2.853 3.278 3.511 3.252 3.803 4.108 10.604 9.313 11.642 13.786 17,922 23.298 30.288 39.374 10 3.707 4.411 4.807 5.695 6.192 4.226 4.818 5.492 7.430 8.916 10.699 12.839 15.407 11 3.479 5.117 5.624 6.777 12 3.896 4.335 5.936 6.580 7.288 8.064 14.552 4.363 7.699 4.898 5.535 8.599 10.147 11.974 18.190 22.737 28.422 6.153 6.886 9.596 11.420 13.590 13 4.887 5.474 14 6.261 7.076 7.988 9.007 15 10.539 12.330 6.254 7.138 8.137 9.266 51.186 7.067 9.358 10.748 12.468 14.463 16.777 19.461 40.874 85.850 378.721 1670.704 16 6.130 8.137 14.129 16.172 18.488 35.527 66.542 9.276 10.575 12.056 19.244 22.186 86.504 6.866 7.690 44.409 55.511 69.389 86.736 264.698 17 7.986 10.761 14.426 16.672 18 9.024 10.197 12.375 14.232 16.367 16.879 19.748 23.106 50.658 19.673 23.214 27.393 22.901 26.623 112.455 27.252 8.613 9.646 31.948 38.338 95.396 19 146.192 20 11.523 13.743 32.429 190.050 26.462 50.950 25 17.000 21.231 32.919 62.669 77.388 705.641 29.960 93.051 289.002 39.116 132.782 450.736 66.212 267.864 1083.657 111.065 533.869 2566.215 184.675 1051.668 5988.914 2619.996 36118.865 30 143.371 237.376 807.794 188.884 700.233 750.378 3927.357 1469.772 9100.438 7523.164 70064.923 40 50 497929.223
Transcribed Image Text:Exhibit 1-A Future value (compounded sum) of $1 after a given number of time periods Period 5% 1.050 1% 1.010 1.020 1.030 2% 1.020 1.040 1.061 4% 1.040 6% 1.060 1.124 3% 7% 8% 9% 10% 11% 1.030 1.061 1.093 1.126 1.159 1.090 1.188 1.295 1.412 1.539 1.677 1.828 1.080 1.166 1 1.070 1.100 1.110 1.145 1.210 1.331 1.232 1.368 1.082 1.103 1.158 1.216 1.276 3 1.125 1.191 1.225 1.260 1.170 1.217 1.262 1.338 1.041 1.082 1.311 1.360 1.464 1.518 1.051 1.403 1.104 1.126 1.149 1.469 1.611 1.772 1.949 1.685 1.870 2.076 2.305 2.558 6. 1.062 1.194 1.265 1.340 1.419 1.501 1.587 1.072 1.230 1.316 1.407 1.504 1.606 1.714 8 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.851 1.993 2.144 1.094 1.105 1.116 1.195 1.219 1.243 2.172 2.367 2.580 2.813 3.066 3.342 3.642 3.970 4.328 4.717 5.142 5.604 8.623 2.358 2.594 2.853 3.138 3.452 1.305 1.423 1.551 1.689 1.838 1.999 1.344 1.629 1.710 10 1.480 1.791 1.967 2.159 2.839 11 1.539 2.105 2.332 2.518 2.720 2.937 3.172 3.426 3.700 3.996 4.316 1.384 1.898 3.152 12 1.127 1.268 1.426 1.601 1.796 2.012 2.252 3.498 13 1.294 1.469 1.886 2.133 2.410 2.579 2.759 2.952 3.159 3.883 4.310 4.785 5.311 5.895 1.138 1.665 14 1.149 1.319 1.513 1.732 1.980 2.261 3.797 1.558 1.605 1.653 1.702 1.754 1.806 2.079 2.183 2.292 15 1.346 1.801 2.397 2.540 1.161 4.177 16 1.173 1.373 1.873 4.595 17 1.400 1.948 2.026 2.107 1.184 2.693 5.054 1.428 1.457 18 1.196 2.407 2.854 3.380 5.560 6.544 1.208 3.617 3.870 6.116 6.727 7.263 8.062 19 2.527 3.026 20 1.220 1.486 2.191 2.653 3.207 4.661 25 2.666 3.243 5.427 6.848 10.835 17.449 1.282 1.641 2.094 3.386 4.292 13.585 30 1.348 1.811 2.427 4.322 5.743 7.612 10.063 13.268 22.892 45.259 117.391 65.001 184.565 7.040 1.489 1.645 2.208 2.692 14.974 29.457 21.725 46.902 31.409 74.358 40 3.262 4.801 10.286 50 4.384 7.107 11.467 18.420 Period 12% 13% 14% 15% 16% 17% 1.170 1.369 1.602 18% 19% 20% 25% 30% 1.120 1.254 1.130 1.277 1.443 1.140 1.150 1.180 1.392 1.643 1.200 1.250 1.563 1.953 2.441 1 1.160 1.190 1.300 2 1.323 1.521 1.749 1.346 1.561 1.300 1.416 1.440 1.690 1.685 1.482 1.689 1.925 2.195 1.728 2.074 2.488 2.197 2.856 3.713 3 1.405 1.574 1.762 1.630 1.842 2.082 2.353 2.658 3.004 3.395 3.836 4 1.811 1.874 1.939 2.005 2.100 2.386 2.840 3.379 4.021 4.785 2.011 2.192 2.288 3.052 2.986 3.583 2.313 2.660 3.059 3.518 4.046 4.652 5.350 2.700 3.185 3.759 4.435 5.234 6.176 6. 1.974 2.436 2.565 3.815 4.827 2.211 3.001 4.768 5.960 7.451| 2.502 2.826 6.275 2.476 2.773 3.106 8.157 4.300 5.160 8. 2.853 3.278 3.511 3.252 3.803 4.108 10.604 9.313 11.642 13.786 17,922 23.298 30.288 39.374 10 3.707 4.411 4.807 5.695 6.192 4.226 4.818 5.492 7.430 8.916 10.699 12.839 15.407 11 3.479 5.117 5.624 6.777 12 3.896 4.335 5.936 6.580 7.288 8.064 14.552 4.363 7.699 4.898 5.535 8.599 10.147 11.974 18.190 22.737 28.422 6.153 6.886 9.596 11.420 13.590 13 4.887 5.474 14 6.261 7.076 7.988 9.007 15 10.539 12.330 6.254 7.138 8.137 9.266 51.186 7.067 9.358 10.748 12.468 14.463 16.777 19.461 40.874 85.850 378.721 1670.704 16 6.130 8.137 14.129 16.172 18.488 35.527 66.542 9.276 10.575 12.056 19.244 22.186 86.504 6.866 7.690 44.409 55.511 69.389 86.736 264.698 17 7.986 10.761 14.426 16.672 18 9.024 10.197 12.375 14.232 16.367 16.879 19.748 23.106 50.658 19.673 23.214 27.393 22.901 26.623 112.455 27.252 8.613 9.646 31.948 38.338 95.396 19 146.192 20 11.523 13.743 32.429 190.050 26.462 50.950 25 17.000 21.231 32.919 62.669 77.388 705.641 29.960 93.051 289.002 39.116 132.782 450.736 66.212 267.864 1083.657 111.065 533.869 2566.215 184.675 1051.668 5988.914 2619.996 36118.865 30 143.371 237.376 807.794 188.884 700.233 750.378 3927.357 1469.772 9100.438 7523.164 70064.923 40 50 497929.223
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