Question

Derek currently has $12,146.00 in an account that pays 4.00%. He will withdraw $5,311.00 every other year beginning next year until he has taken 7.00 withdrawals. He will deposit $12146.0 every other year beginning two years from today until he has made 7.0 deposits. How much will be in the account 29.00 years from today? (ONLY ANSWER IF YOU DO NOT USE EXCEL, NEED INPUTS TO PUT INTO FINANCIAL CALCULATOR AND STEP BY STEP INSTRUCTIONS)

Answer 1

Solving using Financial calculator, Lets us first feed all the value in financial calculator

CF0 = 12146

C01 = -5311

F01 = 1

C02 = 12146

F02 = 1

C03 = -5311

F03 = 1

C04 = 12146

F04 = 1

C05 = -5311

F05 = 1

C06 = 12146

F06 = 1

C07 = -5311

F07 = 1

C08 = 12416

F08 = 1

C09 = -5311

F09 = 1

C10 = 12146

F10 = 1

C11 = -5311

F11 = 1

C12 = 12146

F12 = 1

C13 = -5311

F13 = 1

C14 = 12146

F14 = 1

Then press NPV, it will ask for I, put 4 and enter. press down arrow, and you will see NPV = 0.00. To get the present value of the cash flows, press CPT. We find that the present value is $46437.63

Now to calculate FV

Put -46437.63 in PV

N = 29

I/Y = 4

PMT = 0

compute for FV

You will get the FV = $144822.77

He will have a total of $144822.77 in his account after 29 years from today.