I have $500,000 to invest today, and also want to invest $24

Finance Dec 19, 2020

I have $500,000 to invest today, and also want to invest $24.000 a year for the next 20 years. Assuming I can earn 10% on my investments, how much will have in 20 years? Please set up the problem (show your work here), look up the factor and then solve, showing your final answer below.

Expert Solution

Use FV function in EXCEL to find the future value

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

rate=10%

nper=20 years

pmt=24000

pv=500000

=FV(10%,20,-24000,-500000,0)=4738349.96

Future value=$4738349.96

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