Question

#2 Derek will deposit $1,654.00 per year for 23.00 years into an account that earns 12.00%. The first deposit is made next year. How much will be in the account 23.0 years from today? unanswered Submit not_submitted Attempts Remaining: Infinity Answer format: Currency: Round to: 2 decimal places.

Answer 1

12% $1,654 Periodic Interest rate, RATE # of periods of deposit, NPER Regular periodic deposits, PMT Initial amount deposited today, PV Periodic deposit type, TYPE Expected balance after 23 years $0 0 = 0 if deposits made at the end of each period; 1 if deposits made at the beginning of each period $173,013.19 [Ref: NOTE] NOTE: В 12% 23 Expected balance after 23 years is calculated using EXCEL FUNCTION FV(rate,nper,pmt,pv,type) where rate=12%; nper=23; pmt=-1654; pv=0; type=0; Here, value for pmt is negative as it denotes cash inflows; type=0 as periodic deposits are made at the end of each period only. C D E F G H I J K 1 Periodic Interest rate, RATE 2 # of periods of deposit, NPER 3 Regular periodic deposits, PMT $1,654 4 Initial amount deposited today, PV $0 5 Periodic deposit type, TYPE 0 = 0 if deposits made at the end of each period; 1 if deposits made at the beginning of each period 6 Expected balance after 23 years =FV(B1,B2,-B3,B4,B5) [Ref: NOTE] 7