Nick, age 30, is starting his savings plan this year by putting away $2,900.00 at the end of every year until he reaches age 65. He will deposit this money at his local savings and loan at an interest rate of 6%. The future value annuity interest factor is 111.4348. You can also use the excel future value (FV) function to solve this problem. =FV(rate,nper,pmt,[pv],[type]) • rate: The interest rate per period. This input is required. • nper: The total number of payment periods. This input is required. • pmt: The constant payment made in each period. This input is required if pmt is omitted. • pv: The present value or lump-sum amount. This input is required if pmt is omitted. • type: A 0 or 1 depending on if payments are due at the beginning or end of the period. This input is optional and 0 will be used if it is omitted. Based on the information provided, by the time Nick turns 65, he will have .
Nick, age 30, is starting his savings plan this year by putting away $2,900.00 at the end of every year until he reaches age 65. He will deposit this money at his local savings and loan at an interest rate of 6%. The future value annuity interest factor is 111.4348. You can also use the excel future value (FV) function to solve this problem. =FV(rate,nper,pmt,[pv],[type]) • rate: The interest rate per period. This input is required. • nper: The total number of payment periods. This input is required. • pmt: The constant payment made in each period. This input is required if pmt is omitted. • pv: The present value or lump-sum amount. This input is required if pmt is omitted. • type: A 0 or 1 depending on if payments are due at the beginning or end of the period. This input is optional and 0 will be used if it is omitted. Based on the information provided, by the time Nick turns 65, he will have .
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Nick, age 30, is starting his savings plan this year by putting away $2,900.00 at the end of every year until he reaches age 65. He will deposit this money at his local savings and loan at an interest rate of 6%.
The future value annuity interest factor is 111.4348.
You can also use the excel future value (FV) function to solve this problem.
=FV(rate,nper,pmt,[pv],[type])
| • | rate: The interest rate per period. This input is required. |
| • | nper: The total number of payment periods. This input is required. |
| • | pmt: The constant payment made in each period. This input is required if pmt is omitted. |
| • | pv: The present value or lump-sum amount. This input is required if pmt is omitted. |
| • | type: A 0 or 1 depending on if payments are due at the beginning or end of the period. This input is optional and 0 will be used if it is omitted. |
Based on the information provided, by the time Nick turns 65, he will have
.
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