Explore BrainMass

Explore BrainMass

    Determining the future value (FV) of a savings bond using Excel.

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    How do I set this problem up in a spreadsheet?

    You have just made your first $20,000 contribution to your individual retirement account. Assuming you earn an 11% rate of return and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing?

    © BrainMass Inc. brainmass.com November 24, 2022, 11:29 am ad1c9bdddf

    Solution Preview

    Future Value (FV) = P(1+r)^n

    (1) Where, P=$20000, r=11% and n=45 years.

    FV = 20000(1.11)^45 ...

    Solution Summary

    The solution calculates the future value of a retirement contribution showing all the steps with the proper responses. Then the solution explains how to do the same calculations in Excel.