Assume that you contribute $330 per month to a retirement plan for 15 years. The

Question

Assume that you contribute $330 per month to a retirement plan for 15 years. Then you are able to increase the contribution to $530 per month for the next 25 years. Given an 8 percent interest rate. What is the value of your retirement plan after the 40 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Initial monthly contribution Number of years Subsequent monthly contribution Number of years Interest rate earned 330 15 530 29 8.00% Complete the following analysis. Do not hard code values in vour calculations Value at end of first set of contributions Value at end of second set of contributions

Explanation / Answer

in place of 8% write the cell reference corresponsind gto interest rate earned
in place of 15 write the cell reference corresponsind gto number of years(15)
in place of 25 write the cell reference corresponsind gto number of years(25)
in place of 330 write the cell reference corresponsind gto inital monthly contribution(330)
in place of 530 write the cell reference corresponsind gto subsequenct monthly contribution(530)

Value at end of first set of contributions:
=FV(8%,15,330)
=8960.20
Value at end of second set of contributions:
=FV(8%,25,530)
=$38,746.15
Value at the end of 40 years:
=FV(8%,25,530)+FV(8%,25,0,-FV(8%,15,330))
=$100,109.8392

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