Future value of annuity

label Business
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schedule 1 Day
account_balance_wallet $5

Assume you are planning to invest $5,000 each year for six years and will earn 10 percent per year. Determine the future value of this annuity if your first $5,000 is invested at the end of the first year. Please show the formula you used.

Aug 16th, 2015

Thank you for the opportunity to help you with your question!

Year Cash flow
1 5000
2 5000
3 5000
4 5000
5 5000
6 5000
 
 
Using excel function
($38,578.05)  
Using formula  
P = PMT [((1 + r)- 1) / r]
P = 5000*[((1=0.1)^6 -1)/0.1]
p= $38,578  
SP-Future value.xlsx 

Please let me know if you need any clarification. I'm always happy to answer your questions.
Aug 16th, 2015

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Aug 16th, 2015
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Aug 16th, 2015
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