Purchase Solution

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

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution

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.

Solution Preview

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

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

FV = 20000(1.11)^45 ...

Purchase this Solution

Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

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.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media