Question

You’ve decided to deposit your money in the bank at the beginning of the year instead of the end of the year, but now you are making payments of $7,000 at an annual interest rate of 9%. How much money will you have available at the end of eight years—rounded to the nearest whole dollar?

Answer 1

Answer:

$84,147.26

Explanation:

For this question, we use the Future value formula that is shown in the spreadsheet attachment below:

Data provided in the question

Present value = $0

Rate of interest = 9%

NPER = 8 years

PMT = $7,000

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after solving this, the future value is $84,147.26