# 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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Chapter 5 / Lesson 16Understand 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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