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Homework answers / question archive / Suppose you deposited $5,000 each year into an account earning 6 per cent interest
Suppose you deposited $5,000 each year into an account earning 6 per cent interest. The first deposit was made one year from today. If you make 10 deposits in all, how much would you have in 10 years' time?
A. $65,903.97
B. $50,000
C. $55,721.50
D. $46,936.46
Computation of Future Value using FV Function in Excel:
=-fv(rate,nper,pmt,pv)
Here,
FV = Future Value = ?
Rate = 6%
Nper = 10 years
PMT = $5,000
PV = 0
Substituting the values in formula:
=-fv(6%,10,5000,0)
FV or Future Value = $65,903.97
So, the correct option is A "$65,903.97".
