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

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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 1 year ago

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