What is the future value at the end of year 5 of a series of 3 deposits? The first deposit occurs at the end of year 3 and is $800. The remaining deposits increase by $150/year (so the last deposit will be $1100 and will occur at the end of year 5) . Assume i = 7.4% compounded annually.
| Calculation of future value | |||||
| Year | Deposit | Future value factor @ 7.4% | Future Value | ||
| A | B | C | B x C | ||
| 0 | $0.00 | = (1+0.074)^5 | 1.42896 | $0.00 | |
| 1 | $0.00 | = (1+0.074)^4 | 1.33051 | $0.00 | |
| 2 | $0.00 | = (1+0.074)^3 | 1.23883 | $0.00 | |
| 3 | $800.00 | = (1+0.074)^2 | 1.15348 | $922.78 | |
| 4 | $950.00 | = (1+0.074)^1 | 1.07400 | $1,020.30 | |
| 5 | $1,100.00 | = (1+0.074)^0 | 1.00000 | $1,100.00 | |
| Future value of deposit series at the end of 5th Year | $3,043.08 | ||||
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