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