This is a future value of a single sum problem.

What is the future value of $60,000 invested for 6 years compounded annually at an interest rate of 8.5%?

First, plug in the known values into the appropriate cells:

The present value – PV – is ($60,000)

The interest rate – Rate – is 8.5%

The number of periods – NPER – is 6

The unknown – future value – FV is determined by

Going to the Formulas tab, look for the FV function.

The function wizard pops up

Select PV,

Select Rate,

Select NPER

Hit OK

The future value is $97,888