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3) Given 20,000 in current savings, and 5,000 a year each and every year saved for...

3) Given 20,000 in current savings, and 5,000 a year each and every year saved for 30 years.

a) What FV will someone have after 30 years with an r of 12%?

b) What FV will someone have after 30 years with an r of 10%?

c) What FV will someone have after 30 years with an r of 8%?

d) What FV will someone have after 30 years with an r of 12% for the first 10 years, then an r of 10% for 10 years, followed by an r of 8% for the last 10 years?

{Hint: Make sure to adjust how you treat the 20,000 in savings for each r}

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Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

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