Problem $18-11$ Dipping into Your Nest Egg $[$LO$18-6]$

You have $$15,000$ in your retirement fund that is earning $5\mathrm{.}5$ percent per year, compounded quarterly. How many dollars in withdrawals per month would reduce this nest egg to zero in $20$ years? $($Use Exhibit $18-16.)$Problem $18-7$ Calculating an IRA Accumulation $[$LO$18-5]$

Janine is $25$ and has a good job at a biotechnology company. Janine estimates that she will need $$953,000$ in her tota$/$ retirement nest

egg by the time she is $65$ in order to have retirement income of $$25,500$ a year. $($She expects that Social Security will pay her an

additional $$20,500$ a year.$)$ She currently has $$4,500$ in an IRA, an important part of her retirement nest egg. She believes her IRA will

grow at an annual rate of $8$ 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 $40$ years in order to reach her retirement income goal? Use $($Exhibit $1-$A$,$

Exhibit $1-$B$,$ Exhibit $1-$C$,$ Exhibit $1-$D$).$

Note: Use appropriate factor$($s$)$ from the tables provided. Round time value factor to $3$ decimal places. Round intermediate and

final answer to $2$ decimal places.

$401($k$)$ accumulation