You plan to save $4,000 at the end of every year for 25 years and then retire. Given a 8% rate of 4. return, what will...

Question

Question

You plan to save $4,000 at the end of every year for 25 years and then retire. Given a 8% rate of 4. return, what will be the

Answer 1

Answer #1

Information provided:

Yearly saving= $4,000

Time= 25 years

Interest rate= 8%

The future value is calculated with the help of a financial calculator.

Enter the below in a financial calculator to compute the future value:

PMT= 4,000

N= 25

I/Y= 8

Press the CPT key and FV to compute the future value.

The value obtained is 242,423.76.

Therefore, future value of the retirement account is $242,423.76.

In case of any query, kindly comment on the solution.

Answer 2

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