Question

You open a savings account that pays 1.2% and make 15 end-of-year deposits. Your first deposit is $500 at the end of year 1 and deposit amounts increase at a rate of $100 per year. How much will you have in the account immediately after the 15th deposit? by excel preferably

Answer 1

Interest = 1.2%

Total deposits = 15

First deposit = 500 then increasing by 100 every year

Using Excel, we get

Year	Investment	FV Factor	Future Value
1	500	1.181754	590.88
2	600	1.167741	700.64
3	700	1.153895	807.73
4	800	1.140212	912.17
5	900	1.126692	1014.02
6	1000	1.113332	1113.33
7	1100	1.100130	1210.14
8	1200	1.087085	1304.50
9	1300	1.074195	1396.45
10	1400	1.061457	1486.04
11	1500	1.048871	1573.31
12	1600	1.036434	1658.29
13	1700	1.024144	1741.04
14	1800	1.012000	1821.60
15	1900	1.000000	1900.00
Total Future value			19230.16

Showing formula in excel

Year	Investment	FV Factor	Future Value
1	500	=(1+0.012)^(15-A2)	=B2*C2
2	=B2+100	=(1+0.012)^(15-A3)	=B3*C3
3	=B3+100	=(1+0.012)^(15-A4)	=B4*C4
4	=B4+100	=(1+0.012)^(15-A5)	=B5*C5
5	=B5+100	=(1+0.012)^(15-A6)	=B6*C6
6	=B6+100	=(1+0.012)^(15-A7)	=B7*C7
7	=B7+100	=(1+0.012)^(15-A8)	=B8*C8
8	=B8+100	=(1+0.012)^(15-A9)	=B9*C9
9	=B9+100	=(1+0.012)^(15-A10)	=B10*C10
10	=B10+100	=(1+0.012)^(15-A11)	=B11*C11
11	=B11+100	=(1+0.012)^(15-A12)	=B12*C12
12	=B12+100	=(1+0.012)^(15-A13)	=B13*C13
13	=B13+100	=(1+0.012)^(15-A14)	=B14*C14
14	=B14+100	=(1+0.012)^(15-A15)	=B15*C15
15	=B15+100	=(1+0.012)^(15-A16)	=B16*C16
Total Future value			=SUM(D2:D16)