Exercise 3_no4 (FV annuity): Your parents have just opened a savings account for you. Starting today,...

Question

Question

Answer 1

Answer #1

We can calculate the desired result by using the below formula in the excel sheet:

=FV(rate.nper,-pmt,pv)

FV is the forward value of the savings account after 10 years

Monthly Deposits (pmt) = $ 200

Monthly rate (rate)= 0.5%

Period = 10 years

Number of Monthly deposits (nper) = 10 * 12

= 120

Using the formula in the excel sheet:

= FV(0.50%,120,-200,0)

= $ 32,775.87

F5 ху fx =FV(0.5%,120,-200,0) G E 2 Monthly Deposits 3 Monthly rate 4. Number of Monthly deposits 5 6 F 200 0.50% 120 *32,775

Hope I am able to solve your concern. If you are satisfied hit a thumbs up !!

Answer 2

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