Question

S06-25 Calculating Annuity Future Values [LO1] You are planning to make annual deposits of $5,700 into a retirement account that pays 10 percent interest compounded monthly. How large will your account balance be in 30 years? (Do not round intermediate calculations and round your answer to 2 decimal places ea 32.16 1

Answer 1

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EXPLAINED BOTH THE METHODS : FINANCIAL FORMULA AND EXCEL FUNCTION

PV, FV, ANNUITY (Autosaved) - Microsoft Excel (Product Activation Failed) Review View Add-Ins Formulas Data - 2x 11 A = = = V General File Home Insert Page Layout % Cut Calibri Ea Copy Paste Format Painter BIU - D Clipboard Font M483 fix A A Wrap Text Merge & Center - $ % , :.: Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Σ AutoSum : A Fill Sort & 2 Clear Filter Editing Find & Select Alignment Number Cells L M N O P Q 465 466 467 468 10% APR = COMPOUNDED MONTHLY EAR = (1+(APR/12))^12 - 1= 469 10.47130674% EXCEL FORMULA PMT RATE YEARS ANSWER AMOUNT OF ANNUITY 5700 A 10.47130674% r 30 n 1025403.79 (=FV(M472,M473,-M471)] 470 471 472 473 474 475 476 477 478 479 480 481 482 FINANCIAL FORMULA FVA= FVA = A*(1/r)*((1+r)^n - 1) 5700*(1/0.1047130674)*((1+0.1047130674)^30 - 1) 5700*179.8954109 1025403.79 ANSWER AMOUNT OF ANNUITY 483 484 485 HIN Rea EXPONPER APR CPI ear FVA pva 52 53 STATEMENTS 56 57 58 59 54 S1 Sheets 52 511 512 513 314 315 316 317 0 0 MORTGAGE ferences s1 0 BOJ 120% - DO 4 * 4 OENG 12-10-2019