a chemical engineer saving for his retirement deposited 1000

a chemical engineer saving for his retirement deposited $10000 into a stock fund at t=0. in year one and eacgh year there after through year 20, he increased the deposite by $1500. if the rate of return on the investments is 12% per year , how much will his retirement account be worth at the end of year 20?

USE EXCEL SPREAD SHEET AND FUNCTIONS TO SOLVE THE PROBLEM (subject is engineering economy)               (the answer should be 1575715)

Solution

by using arthmatic progression

sum = N/2 * (2a+(n-1)d)

sum= 20/2(2*10000+(20-1)1500)= 4850000

100% = 4850000

140%= 1575715