Question

You plan to save the following amounts $3265 today $6509 per year for the next 2 years $8274 per year for the following 1 years $11987 per year for the following 8 years $17487 per year for the final 9 years Assuming you earn a 10.6% rate of return during the entire period, how much will you have at the END of the time horizon? Round answer to the nearest dollar.

Answer 1

Amount at the END of the time horizon	744,893.92
Time	Opening Balance	Interest at 10.6%	Total Balance	Deposits	Closing Balance
1.00	3,265.00	346.09	3,611.09	6,509.00	10,120.09
2.00	10,120.09	1,072.73	11,192.82	6,509.00	17,701.82
3.00	17,701.82	1,876.39	19,578.21	8,274.00	27,852.21
4.00	27,852.21	2,952.33	30,804.55	11,987.00	42,791.55
5.00	42,791.55	4,535.90	47,327.45	11,987.00	59,314.45
6.00	59,314.45	6,287.33	65,601.78	11,987.00	77,588.78
7.00	77,588.78	8,224.41	85,813.19	11,987.00	97,800.19
8.00	97,800.19	10,366.82	108,167.01	11,987.00	120,154.01
9.00	120,154.01	12,736.33	132,890.34	11,987.00	144,877.34
10.00	144,877.34	15,357.00	160,234.34	11,987.00	172,221.34
11.00	172,221.34	18,255.46	190,476.80	11,987.00	202,463.80
12.00	202,463.80	21,461.16	223,924.96	17,487.00	241,411.96
13.00	241,411.96	25,589.67	267,001.63	17,487.00	284,488.63
14.00	284,488.63	30,155.79	314,644.43	17,487.00	332,131.43
15.00	332,131.43	35,205.93	367,337.36	17,487.00	384,824.36
16.00	384,824.36	40,791.38	425,615.74	17,487.00	443,102.74
17.00	443,102.74	46,968.89	490,071.63	17,487.00	507,558.63
18.00	507,558.63	53,801.21	561,359.84	17,487.00	578,846.84
19.00	578,846.84	61,357.77	640,204.61	17,487.00	657,691.61
20.00	657,691.61	69,715.31	727,406.92	17,487.00	744,893.92