Future value of annuity

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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

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

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Aug 16th, 2015

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Aug 16th, 2015
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