Question

Derek will deposit $5,760.00 per year for 11.00 years into an account that earns 6.00%, The first deposit is made next year. How much will be in the account 42.00 years from today?

Answer 1

Ans:- we will use the FV function of excel to find the deposit.

For FV at the end of 11 years, Rate=6%,Nper=11,Pmt=-$5670,PV=0

For FV at the end of 42 years, Rate=6%,Nper=42-11=31, PV=-$82,236.66

Therefore, the FV value at the end of 42 years will be $525,017.47.

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