can you please help me with this, also if you can show me how to imput on TI -84

Question

can you please help me with this, also if you can show me how to imput on TI -84 , if not thats ok.

Thank you.

Assume that you contribute $400 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $800 per month for another 25 years. Given a 8 percent interest rate, what is the value of your retirement plan after the 50 years?

Assume that you contribute $400 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $800 per month for another 25 years. Given a 8 percent interest rate, what is the value of your retirement plan after the 50 years?

Explanation / Answer

This is effectively 2 annuities - one of $400 for 25 years and another of $800 for next 25 years.

Future value = 400*((1+8%/12)^(25*12)-1)/(8%/12)*(1+8%/12)^(25*12) + 800*((1+8%/12)^(25*12)-1)/(8%/12) = 3,553,102

Hope this helped ! Let me know in case of any queries.

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