Question

Assume that you contribute $210 per month to a retirement plan for 15 years. Then you are able to increase the contribution to $410 per month for the next 25 years. Given a 9.0 percent interest rate, what is the value of your retirement plan after the 40 years. Round two decimals places Whats the future value of multiple annuities

Answer 1

Total value after 40 years

$1,207,301.64

FV of $210 for 15 years	$79,465.21
FV at the end of year 40	$747,641.65
FV at $410 for 25 years	$459,659.99
Total value after 40 years	$1,207,301.64

Book1-Excel AutoSave Off) Sign in O Tell me what you want to do Share Formulas Review Comments File Home Insert Draw Page Layout Data View Help 翔Insert, Σ A A = 11 Calibri General 5Delete Conditional Format as Cell Sort &Find 8& Paste B IU F A- $- % 0 00 cO0 Format T Formatting Table Styles Filter Select Clipboard Alignment Cells Font Number Styles Editing FV of $210 for 15 years N1 K L M O P Q =FV(9%/12,15*12,-210) =FV(9%/12,25*12,-01) FV of $210 for 15 years 1 FV at the end of year 40 FV at $410 for 25 years Total value after 40 years 2 FV(9%/12,25*12,-410) 3 4 -02+03 5 6 7 8 9 10 11 12 13 14 15 16 17