Question 6 of 10 value 1000 points Assume that you contribut

Question 6 (of 10) value: 10.00 points Assume that you contribute $330 per month to a retirement plan for 15 years. Then you are able to increase the contribution to $660 per month for another 25 years. Given a 6 percent interest rate, what is the value of your retirement plan after the 40 years? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value of multiple annuities Hints References eBook & Resources Hint# vork

Solution

We have

Future value for 40yrs = $330*(((1+(6%/12))^(40*12))-1)/(6%/12)

                                = $657,191.94

Future value for 25yrs = $330*(((1+(6%/12))^(25*12))-1)/(6%/12)

                                 =$228,688.00

Future value of annuities = $657,191.94 + $228,688 = $885,879.94

                                =