Purchase Solution

Present value: tables and excel methods

Not what you're looking for?

Ask Custom Question

Calculate the following:

An employee works at the local hamburger restaurant for 40 years and never earns more than minimum wage, which is $12,000 a year. However, this employee is able to save 6%, or $720, per year. Over the 40-year period, the employee's investments average 8% interest per year.

1. How much will the employee have in his or her retirement account at the end of the 40 years?

2. What are your thoughts regarding this sum?

Purchase this Solution

Solution Summary

This uses both the tables (old fashion math) and Excel formulas so you can see both used.

Solution Preview

See the attached file.

I did it both ways....old fashion math and the fv ...

Solution provided by:
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution


Free BrainMass Quizzes
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Lean your Process

This quiz will help you understand the basic concepts of Lean.