Question

fv function

B FV function (1) - Excel Search Brandi Creech AutoSave OH File Home Insert Page Layout Formulas Data Review View Help HILIK A B C D E Name: Your score: 0% 2 You have just graduated from college, and are starting your first job at an annual salary of $60,000. Your new employer offers a 401k, and you decide to make a monthly invest 4% of your monthly salary. Use the FV function to calculate the future value of your 401k assuming the fund earns 7% annually, and you plan to retire in 22 years. Annual salary Annual rate of return Contribution rates Years to retirement # of payments per year $60,000 7% 4% 22 years 5% 12 COURO CON Use the FV function to compute the value of your 401k at the end of 22 years assuming a contribution rate of 4%.(4% of your monthly salary) Use the FV function to compute the value of your 401k at the end of 22 years assuming a contribution rate of 5%.(5% of your monthly salary) Instructions FV Edit Type here to search

use the fv function to compute the value of your 401k at the end of 22 years assuming a contribution rate of 4%. (4% of your monthly salary)

Answer 1

Answer:

B F G H Annual Salary Annual rate of return Contribution rates Years to retirement # of payments per year $60,000 7% 4% 5% 22 years 12 Use the FV function to compute the value of your 401k at the end of 22 years assuming a contribution rate of 4%. (4% of your monthly salary) $124,929.13 Use the FV function to compute the value of your 401k at the end of 22 years assuming a contribution rate of 5%. (5% of your monthly salary) $156,161.41

Above excel with 'show formula' is as follows:

Annual Salary Annual rate of return Contribution rates Years to retirement # of payments per year 60000 0.07 0.04 22 0.05 years 12 Use the FV function to compute the value of your 401k at the end of 22 years assuming a contribution rate of 4%. (4% of your monthly salary) --FV(07/010,D9*D10,D6/D10*D8,,0) Use the FV function to compute the value of your 401k at the end of 22 years assuming a contribution rate of 5%. (5% of your monthly salary) --FV(D7/12,D9*D10, D6/D10*E8,,0)