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Find the FV of $10,000 33 years in the future if the opportunity cost rate is...

Find the FV of $10,000 33 years in the future if the opportunity cost rate is 8% (use Excel formulas and basic PV/FV techniques). Please show how to do in Excel along with formatting.

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Answer #1

We are given the following information:

Value of account at time 0 PV $     10,000.00
rate of interest r 8.00%
number of years n 33
Annual Compounding frequency 1
Future value FV $ 1,26,760.50

We need to solve the following equation to arrive at the required FV

So the FV is $126760.50

Excel formula asre as follows: =FV(0.08,33,0,-10000)

The PV term is entered in negative because you have to deposit it into the account to get the FV after 33 years. PV is an outflow and FV is an inflow.

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