Question
In: Finance
You plan to make monthly deposits of $1,000 into an account at the beginning of each...
You plan to make monthly deposits of $1,000 into an account at the beginning of each month for the next 11 years. If you can earn 3.4% interest, what will your final balance be by the end of 11 years? Round to the nearest cent. [Hint: Beginning of period monthly cash flows!]
Solutions
Expert Solution
Use FV function in EXCEL to find the future value
=FV(rate,nper,pmt,pv,type)
rate=3.4%/12=0.2833%
nper=12*11=132
pmt=1000
pv=0
type=1 (Because the payments are made at the beginning of the month)
=FV(0.2833%,132,-1000,0,1)=$160,253.48
The final balance after 11 years=$160,253.48
jeff jeffy answered 2 years agoRelated Solutions
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rev: 09_17_2012
Multiple Choice
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$75,495.77
$66,266.58
$68,305.69
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