Question

Assume that you contribute $370 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $740 per month for another 25 years. Given a 9.0 percent interest rate, what is the value of your retirement plan after the 50 years?

Answer 1

1 $370 payments value in 25 years $ 414,815.12 -FV(9%/12,25*12,-370,0) (1)-FV(9%/12,25*12,0,-414815.12) (2)-FV(996/12,25*12,-740,0) 2 $370 payments value in 50 years $ 3,902,752.60 3 $740 payments value in 50 years 4 829,630.23 | Value of your retirement s plan after the 50 years $4,732,382.842