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Future Value Calculation and Annuities

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Your parents are planning to retire in 18 years. They currently have $250,000. They supplement those dollars with an annual payment into a retirement account of $20,000. What will be the value of all dollars if the funds can earn an interest rate of 5%? What will be the value of all dollars if the funds can earn an interest rate of 10%?

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Solution Summary

Compute the future value of a deposit and of an annuity.

$2.19