TVM07 - Future Value of an Annuity
This is a future value of an annuity problem.
What is the future value of $6,000 deposits made at the end of the next six years earning interest of 8.5%?
First, plug in the known values into the appropriate cells:
The number of periods – NPER – is 6
The interest rate – Rate – is 8.5%
The payment – PMT – is $6,000
Going to the formulas tab, look for the FV function.
The function wizard pops up
The FV is $44,574