Anquan Vernon are saving 2000 at the end of every year in a

Anquan & Vernon are saving $2000 at the end of every year in an account that pays 6 % interest. If there are no withdrawals from the account, the balance after 10 years will be?

Solution

There are a total of $2000 saved at the end of every year and the same is deposited in an account that pays 6 % interest. Assuming there are no withdrawals from the account, the balance after 10 years will be the future value of the accumulated sum of money. This is given by F10

F10 = 2000(F/A, 6%, 10) = 2000*13.1808 = $26,361.60

Using excel formula, we have FV(6%,10,-2000,0,0) = $26,361.60