growing annuity example future value formula excel

Question:You are considering whether your savings will be enough to meet your retirement needs.You saved 100,000 last year and you expect your annual savings to increase by 8 percent per year for the next 20 years.if your savings can be invested at 9 percent,how much you would have at the end of twentieth year? Solution:In 0th year you will have 100000 with you.Given this amount is growing at 8 percent per year.So...

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present value of money questions with answers present value formula

Present Value Formula P.V=F.V/(1+r)^n What is the present value if the future value is  100000 and n=10,Assume r=10% P.V=F.V/(1+r)^n          =100000 /(1.1)^10        =3855 createSummaryAndThumb("summary7853395778319058676"...

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future value of money questions with answers future value of money formula

Future value formula=P*(1+r)^n Question:A invests Rs.10000 when he started working at the age of 25.He retires at the age of 55.What will be the future value of the money at the time he retires. Assume rate of interest=10%. Soln:P=10000         r=.1         n=30         F.V=P*(1+r)^n               F.V=10000*(1+.1)^30                        ...

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