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 February 24, 2021, 2:06 pm ad1c9bdddf
Future Value (FV) = P(1+r)^n
(1) Where, P=$20000, r=11% and n=45 years.
FV = 20000(1.11)^45 ...
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.