Future Value of Multiple Annuities Assume That You Contribute $200

question 27

Multiple Choice

Future Value of Multiple Annuities Assume that you contribute $200 per month to a retirement plan for 15 years.Then you are able to increase the contribution to $400 per month for another 25 years.Given a 5 percent interest rate,what is the value of your retirement plan after 40 years?

• A)$424,305.97
• B)$24,159.95
• C)$28,475.66
• D)$72,479.86

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Definitions:

Annual Amortization

The process of spreading out a loan or intangible asset's cost over its useful life, reflecting each year’s expense on the financial statements.

Investment Balance

Investment balance refers to the total value of all the securities or assets that an individual or institution holds in an investment account at a given point in time.

Consolidation Entry

An accounting record that combines the financial statements of two or more merged or acquired companies.