You want to have 75000 in your savings account 12 years from

You want to have $75,000 in your savings account 12 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.8 percent interest, what amount must you deposit each year? How to insert the formula in Excel?

Solution

USe PMT Funtion in Excel

Attributes

Rate=6.8%

NPER=12

PV=0

FV=75000

Formula

=PMT(6.8%,12,0,-75000,0)

=$4242.25