Answered: If you deposit $2,000 into an account…

If you deposit $2,000 into an account at the end of each of the next 40 years, at 4.5% interest, how much will you have in the account, to the nearest $1,000, in 40 years?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

If you deposit $2,000 into an account at the end of each of the next 40 years, at 4.5% interest, how
much will you have in the account, to the nearest $1,000, in 40 years?
O $184,000
O $214,000
O $63,000
O $122,000
O $196,000

Expert Solution

Step 1

It can be solved using

In excel

FV (rate, nper, pmt, [Pv], [type])

Rate The interest rate for the loan.
Nper The total number of payments for the loan.
Pmt = payment per period
Pv The present value
Fv The future value
Type The number 0 (zero) or 1 and indicates when payments are due.

Step by step

Solved in 3 steps with 1 images

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