Problem 11-2 (LO11.1)
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Using Exhibit 1-B, complete the following table. (Round FV factors to 3 decimal places and final answers to the nearest whole dollar amount.) |
| Annual Deposit |
Rate of Return |
Number of Years |
Investment Value at the End of Time Period |
Total Amount of Investment |
Total Amount of Earnings |
| $3,800 | 5% | 20 | $ | $ | $ |
| $3,800 | 7% | 20 | $ | $ | $ |
| $3,800 | 7% | 30 | $ | $ | $ |
| $3,800 | 9% | 30 | $ | $ | $ |
| Annual Deposit | Rate of return | No of years | Investment value at the end of time period | Total amount of investment | Total amount of earnings |
| 3,800.00 | 5% | 20.00 | $125,651 | $76,000.00 | $49,651 |
| 3,800.00 | 7% | 20.00 | $155,783 | $76,000.00 | $79,783 |
| 3,800.00 | 7% | 30.00 | $358,951 | $114,000.00 | $244,951 |
| 3,800.00 | 9% | 30.00 | $517,969 | $114,000.00 | $403,969 |
| Calculated using Future value formula in excel with rate as rate of return, PMT as annual deposit and Nper as no of years | This is calculated by multiplying annual deposit by no of years | The difference between Investment value and Total amount of investment is the earnings |
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