Your beginning salary is$70,000.Youdeposit12% at the end of each year in a savings account that earns 3% interest. Your salary increases by 2% per year. What value does your savings book show after 40 years?
please solve this question on Excel sheet and showing the formula
Year | Salary | Deposit amount |
1 | 70000 | 8400 |
2 | 71400.00 | 8568.00 |
3 | 72828.00 | 8739.36 |
4 | 74284.56 | 8914.15 |
5 | 75770.25 | 9092.43 |
6 | 77285.66 | 9274.28 |
7 | 78831.37 | 9459.76 |
8 | 80408.00 | 9648.96 |
9 | 82016.16 | 9841.94 |
10 | 83656.48 | 10038.78 |
11 | 85329.61 | 10239.55 |
12 | 87036.20 | 10444.34 |
13 | 88776.93 | 10653.23 |
14 | 90552.46 | 10866.30 |
15 | 92363.51 | 11083.62 |
16 | 94210.78 | 11305.29 |
17 | 96095.00 | 11531.40 |
18 | 98016.90 | 11762.03 |
19 | 99977.24 | 11997.27 |
20 | 101976.78 | 12237.21 |
21 | 104016.32 | 12481.96 |
22 | 106096.64 | 12731.60 |
23 | 108218.58 | 12986.23 |
24 | 110382.95 | 13245.95 |
25 | 112590.61 | 13510.87 |
26 | 114842.42 | 13781.09 |
27 | 117139.27 | 14056.71 |
28 | 119482.05 | 14337.85 |
29 | 121871.69 | 14624.60 |
30 | 124309.13 | 14917.10 |
31 | 126795.31 | 15215.44 |
32 | 129331.22 | 15519.75 |
33 | 131917.84 | 15830.14 |
34 | 134556.20 | 16146.74 |
35 | 137247.32 | 16469.68 |
36 | 139992.27 | 16799.07 |
37 | 142792.11 | 17135.05 |
38 | 145647.96 | 17477.75 |
39 | 148560.92 | 17827.31 |
40 | 151532.13 | 18183.86 |
NPV | 2,71,412.68 | |
Future worth | 8,85,358.43 |
Showing formula in excel
Year | Salary | Deposit amount |
1 | 70000 | =B2*0.12 |
2 | =B2*1.02 | =B3*0.12 |
3 | =B3*1.02 | =B4*0.12 |
4 | =B4*1.02 | =B5*0.12 |
5 | =B5*1.02 | =B6*0.12 |
6 | =B6*1.02 | =B7*0.12 |
7 | =B7*1.02 | =B8*0.12 |
8 | =B8*1.02 | =B9*0.12 |
9 | =B9*1.02 | =B10*0.12 |
10 | =B10*1.02 | =B11*0.12 |
11 | =B11*1.02 | =B12*0.12 |
12 | =B12*1.02 | =B13*0.12 |
13 | =B13*1.02 | =B14*0.12 |
14 | =B14*1.02 | =B15*0.12 |
15 | =B15*1.02 | =B16*0.12 |
16 | =B16*1.02 | =B17*0.12 |
17 | =B17*1.02 | =B18*0.12 |
18 | =B18*1.02 | =B19*0.12 |
19 | =B19*1.02 | =B20*0.12 |
20 | =B20*1.02 | =B21*0.12 |
21 | =B21*1.02 | =B22*0.12 |
22 | =B22*1.02 | =B23*0.12 |
23 | =B23*1.02 | =B24*0.12 |
24 | =B24*1.02 | =B25*0.12 |
25 | =B25*1.02 | =B26*0.12 |
26 | =B26*1.02 | =B27*0.12 |
27 | =B27*1.02 | =B28*0.12 |
28 | =B28*1.02 | =B29*0.12 |
29 | =B29*1.02 | =B30*0.12 |
30 | =B30*1.02 | =B31*0.12 |
31 | =B31*1.02 | =B32*0.12 |
32 | =B32*1.02 | =B33*0.12 |
33 | =B33*1.02 | =B34*0.12 |
34 | =B34*1.02 | =B35*0.12 |
35 | =B35*1.02 | =B36*0.12 |
36 | =B36*1.02 | =B37*0.12 |
37 | =B37*1.02 | =B38*0.12 |
38 | =B38*1.02 | =B39*0.12 |
39 | =B39*1.02 | =B40*0.12 |
40 | =B40*1.02 | =B41*0.12 |
NPV | =NPV(3%,C2:C41) | |
Future worth | =FV(3%,40,,-C42) |
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