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Future Value of Increasing Deposits with a Break in Deposits |
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Future Value of Increasing Deposits with a Break in Deposits |
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Future Value of Increasing Deposits with a Break in Deposits
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Future Value of Increasing Deposits with a Break in Deposits |
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Future Value of Increasing Deposits with a Break in Deposits |
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Calculate the account value in 20 years with monthly deposits of $100 occurring during the first 10 years, increasing annually by 2% per year. Assume a 6% rate of return.
Use the following values for the prompts:
Prompt |
Value |
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Type of Fund |
Future Value |
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Current Account Value |
0 |
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Type of Deposits |
Annual Increase by a % |
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# of Deposits/Year |
12 |
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Amount of Each Deposit |
100 |
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Deposits Made at |
Beginning of Period |
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Annual Increase in Deposit |
2 |
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Interest Rate |
6 |
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# of Years |
20 |
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Future Value |
Do not enter value |
Place the cursor on the Future Value prompt and click on the 'Calculate Cursor Line' button.
Then in the grid enter zeros ('0') in the Annual Deposits column for years 11 through 20.
| Note: | If the check box Carry Values Down Column is marked (found below the grid), after editing the value for year 11, the entered value (zero) will be carried down for all subsequent years. |
Future Value calculates $31,711.60.