Zian who is 25 today is starting work at her new job and has

Zian, who is 25 today, is starting work at her new job and has $2,500 that she invests in an investment account today. In addition, she will invest $400 per month end of each month until she retires at the age of 70. If she can earn 11 percent on her investments, how much will she have when she retires? Also, please show how to entering number in financial calculator HP 10bII+

Solution

use fv formuale in excel to solve this

=fv(rate,nper,pmt,pv,type)

=fv(11%/12,45*12,400,2500,0)

=6324433.11

in calculator als0 use fv formuale. The inputs are :

1.Input -2500and press PV
2.Input 25*12 and press N
3.Input 11%/12 and press I/YR
4.Input -400 and press PMT
5.Press the FV key to solve for the future value