In: Accounting
You put $50 in your savings account at the end of each month. The nominal interest rate is 14% annual nominal compounded monthly, and you have at the end $2,221.14. what its your annuity value?
To draw the cash flow diagram, we must know the number of periods that we have to put $50 in the savings account. The number of periods is found using the following equation
Solving for n in the above equation
Number of months = 36
The cash flow diagram is drawn using excel. In excel, go to insert, charts and select column