you decide to save $2000 at the end of each year for the next 18 years...

you decide to save $2000 at the end of each year for the next 18 years if your savings earn an annual interest rate of 2% how much will you have saved up by the end of 18 years round to the nearest cent

Expert Solution

The amount that you get after 18 years can be computed using the concept of time value of money.Here $1800 a year is an annuity ,so the future value of this annuity at 2% per year would give the final amount

We can use the excel function =FV() for this

The formula used=FV(B4,B3,-B2) we get the amount as $38,542.16

jeff jeffy answered 2 years ago

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