Question

In: Advanced Math

I presently have $10,000 in the bank. At the beginning of each of the next 20...

I presently have $10,000 in the bank. At the beginning of each of the next 20 years, I will invest $4,000, and I expect to earn 6% interest per year. After 20 years I pay $15,000 in closeout fees on on the investment. At the end of the investment and fees how much money will I have? (answer $108,900).

I was given the answer from the professor I just need to know how to calculate this answer on Excel with formulas.

Expert Solution

As per the information given in the question.

Initial amount in the bank = $ 10,000

Yearly investment = $ 4,000 (for 20 years 4000$ each year)

Interest rate gained on investment = 6%

I am attaching the total investment and interest gained on it in an image:

here our total investment in 20 years = $ 80,000

Interest gained on it at the rate of 6% = $ 50,400

closeout fee at the end of 20 years = $ 15,000

hence,

$total money with the investor = $ 125,400$ dollars

formula for calculating interest is =

where I is Investment per year, R is the interest rate on investment,, n is the number of years for the investment is done.

Hope the solution is as per the requirement. If there remains any confusion, I am available to sort that out.

Colby Messinger answered 1 year ago

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