Question

Your uncle has agreed to deposit $3193 in your brokerage account at the beginning of each of the four years (t=0, t=1, t=2, t=3). You estimate that you can earn 6 percent a year on your investments. How much will you have in your account four years from now (at t = 4)? (Assume that no money is withdrawn from the account until t = 4)

Answer 1

To calculate the amount at the end of year 4 use the formula of Future Value (FV) in excel

Where:

rate= 6%

nper = 4 years

pmt = $3,193

pv = 0

type = 1 (for beginning of the year)

So after 4 year you will have $14,806.24

I hope this clear your doubt.

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