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 $$953,000$ in her total retirement nest egg by the time she is $65$ in order to have retirement income of $$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.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.

Answer is complete but not entirely correct.