1 .You work for a company that gives you an annual bonus of $5,000 a year that increases 5% for 3 years. This deferred compensation plan pays 8% annually. Using the formula attached, what would the accumulated value of your investment be at the end of 3 years?
Compound Interest | ||
Investment | $10,000 | |
Interest | 6% | |
Term (n) | 4 | |
Years Invested | 1 | |
Total | $10,613.64 |
Determining Future Value | |
Investment (Bonus) | $10,000 |
Increase | 7% |
Term in Years | 5 |
Annual Payment Percentage | 10% |
Total | $76,251.37 |
2) You have a $20,000 investment that pays 4% semi-annually for 2 years. What is the future value of your investment in 2 years?
1 .You work for a company that gives you an annual bonus of $5,000 a year that increases 5% for 3 years. This deferred compensation plan pays 8% annually. Using the formula attached, what would the accumulated value of your investment be at the end of 3 years? | ||||
Determining Future Value | ||||
Investment (Bonus) | 5000 | |||
Increase | 5% | |||
Term in Years | 3 | |||
Annual Payment Percentage | 8% | |||
Total | 18375.66 | |||
A | B | C = (A+B)*8% | A+ B + C | |
Year | Beginning Balance | Savings @ 5% | Earnings @ 8% | Ending balance |
1 | 0 | 5000 | 400 | $ 5,400.00 |
2 | 5400 | 5250 | 852 | $ 11,502.00 |
3 | 11502 | 5512.5 | 1361.16 | $ 18,375.66 |
2) You have a $20,000 investment that pays 4% semi-annually for 2 years. What is the future value of your investment in 2 years? | ||||
Compound Interest | ||||
Investment | 20000 | |||
Interest | 4% | |||
Term (n) | 2 | |||
Years Invested | 2 | |||
Future Value = FV (rate, nper, pmt, [pv], [type]) ; FV(4%/2,2*2,0,-20000,1) | $21,648.64 | |||
1 .You work for a company that gives you an annual bonus of $5,000 a year...
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