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1. Assume that you contribute $360 per month to a retirement plan for 15 years. Then you are able to increase the contribution to $720
1. Assume that you contribute $360 per month to a retirement plan for 15 years. Then you are able to increase the contribution to $720 per month for another 25 years. Given a 6.0 percent interest rate, what is the value of your retirement plan after the 40 years?
2. Compute the present value of a $3,200 deposit in year 1, and another $2,700 deposit at the end of year 3 if interest rates are 10 percent.
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