how to solve future value ordinary annuity through excell fu

how to solve future value ordinary annuity through excell function.

PMT=400

N=10

RATE=10%

Solution

Formula for future value of ordinary annuity is

FV(annuity) = A[(1+r)^n-1/r]

A= Annual payments

N = number of period

r = rate of interest

FV(annuity) = 400[(1.1)^10 - 1 /0.1]

=400[(2.593742-1)/0.1]

=400[15.93742]

=6374.97$

Using Excel

Use Formula =FV(Interest rate,N,PMT,PV)

=FV(10%,10,400,0)

one will get the answer