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Homework answers / question archive / How much will you have in a savings account In ten years, If you deposit $1000 In the account at the end of each year and the account earns 6% Interest, compounded annually? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annultyot$1
How much will you have in a savings account In ten years, If you deposit $1000 In the account at the end of each year and the account earns 6% Interest, compounded annually? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annultyot$1.) (Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.)
Multiple Choice
O $10,000
O $17,906
$10,600
O$13,181
Computation of Future Value using FV Function in Excel:
=fv(rate,nper,pmt,-pv)
Here,
FV = Future Value = ?
Rate = 6%
NPER = 10 years
PMT = $1,000
PV = 0
Substituting the values in formula:
=fv(6%,10,-1000,0)
FV or Future Value = $13,180.79 or $13,181
So, Future Value is $13,181.
