Question

Brief Exercise 6-5 Stacy Medavoy will invest $5,500 a year for 19 years in a fund that will earn 10% annual interest. Click here to view factor tables If the first payment into the fund occurs today, what amount will be in the fund in 19 years? If the first payment occurs at year-end, what amount will be in the fund in 19 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to decimal places, e.g. 458,581.) First payment today First payment at year-end LINK TO TEXT

Answer 1

1)

First payment today:

=FV(10%,19,-5500,,1)

=309512

At year end:

=FV(10%,19,-5500,,0)

=281375

2)

=PMT(5%,10,,357600)

=28431