Future Value of Multiple Annuities - Assume that you contribute $240 per month to a retirement...
Question:
Future Value of Multiple Annuities - Assume that you contribute $240 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $340 per month for another 20 years. Given a 8.0 percent interest rate, what is the value of your retirement plan after 40 years?
$896,744 $188,448 $187,200 $837,842
Future Value:
The value of money depreciates with time. So, the worth of $1 today is more than that at a later date. Future value of any payment received signifies the worth of that payment at the current date and it is discounted at the given rate of return.
Answer and Explanation: 1
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View this answer- The value of retirement plan after 40 years is $896,744
Interest rate per year = 8%
Interest rate per month = 8 / 12 = 0.67%
Calculating value of...
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How to Calculate Future Value: Formula & Example
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Chapter 5 / Lesson 16
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Understand the definition of future value and the future value formula. Explore some examples that show how to calculate the future value of an investment.
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