What will be the future value of your savings in 10 years assuming you can deposit $22210 at the beginning of each year into an investment fund that earns 10

Finance Sep 07, 2020

What will be the future value of your savings in 10 years assuming you can deposit $22210 at the beginning of each year into an investment fund that earns 10.0% per annum?

Expert Solution

Computation of Future Value using FV Function in Excel:

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

Here,

FV = Future Value = ?

Rate = 10%

Nper = 10 Years

PMT = $22,210

PV = 0

Type = 1 (deposit at the beginning)

Substituting the values in formula:

=-fv(10%,10,22210,0,1)

FV or Future Value = $389,367.22

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