a. Andrea wants to know how much money she will have in 6 years if she deposits her $900 tax refund now and then deposits an additional $60 per month in her account that pays an APR of 1.5% compounded monthly. Use Excel to determine how much money will Andrea have in the account in 6 years? $ b. If Andrea changes her mind and decides that instead of setting aside $60 per month she wants to know how much she will have to deposit each month to save up a total of $7500, we can use goal seek to find the value for PMT which yields $7500 at the end of 6 years. How much money will Andrea need to deposit per month?
a. Andrea wants to know how much money she will have in 6 years if she deposits her $900 tax refund now and then deposits an additional $60 per month in her account that pays an APR of 1.5% compounded monthly. Use Excel to determine how much money will Andrea have in the account in 6 years? $ b. If Andrea changes her mind and decides that instead of setting aside $60 per month she wants to know how much she will have to deposit each month to save up a total of $7500, we can use goal seek to find the value for PMT which yields $7500 at the end of 6 years. How much money will Andrea need to deposit per month?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 14PROB
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