Question

"Argus Filch has been slowly saving durring his years of cleaning Hogwarts and has saved $1,500 a year for the past 30 years. He plans to work another 10 years and continue saving the $1,500 a year. Given that Argus will have made 40 deposits to his super fund. How much will Argus be able to spend per year starting in year 11 for the next 47 years given his Magic Super fund earns 13.5%p.a.?"

1276.6

37217.24

90642.93

236759.27

9577.96

Answer 1

Answer -
Basically we have to find out future value of per year spending after 10 years, for each of next 47 years
USE FV function in excel
FV of fund after 10 years	=FV (rate, nper, pmt, [pv], [type])
	=FV(0.135,40,-1500,0,)
Total Future value of saving	$17,49,210.22
Per Year Spending for next 47 Years	$37,217.24
Here
Interest Rate	13.50%
No of Saving	30+10 =40
Per Year Payment	1500
No. of years / Payment	40
Payment made at the end of year	select 0
Correct Option 2	$37,217.24