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You just celebrated your 25th birthday today. You plan to invest $2000 annually, with the first...

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Finance

You just celebrated your 25th birthday today. You plan to invest$2000 annually, with the first $2000 invested on your 26th birthdayand the last invested on your 60th birthday.

What is the value of this investment on your 61st birthday ifall invested funds earn 6 percent annually?

Answer & Explanation Solved by verified expert
4.4 Ratings (887 Votes)

Ans: $ 222,869.55

Years Annuity payment(A) future value factor(B) future value factor Future value(A*B)
1 26 2000 7.251025276 (1.06)^34 14502.05055
2 27 2000 6.840589883 (1.06)^33 13681.17977
3 28 2000 6.453386682 (1.06)^32 12906.77336
4 29 2000 6.088100643 (1.06)^31 12176.20129
5 30 2000 5.743491173 (1.06)^30 11486.98235
6 31 2000 5.418387899 (1.06)^29 10836.7758
7 32 2000 5.111686697 (1.06)^28 10223.37339
8 33 2000 4.822345941 (1.06)^27 9644.691881
9 34 2000 4.549382963 (1.06)^26 9098.765926
10 35 2000 4.29187072 (1.06)^25 8583.741439
11 36 2000 4.048934641 (1.06)^24 8097.869283
12 37 2000 3.819749662 (1.06)^23 7639.499323
13 38 2000 3.603537417 (1.06)^22 7207.074833
14 39 2000 3.399563601 (1.06)^21 6799.127201
15 40 2000 3.207135472 (1.06)^20 6414.270944
16 41 2000 3.025599502 (1.06)^19 6051.199004
17 42 2000 2.854339153 (1.06)^18 5708.678306
18 43 2000 2.692772786 (1.06)^17 5385.545572
19 44 2000 2.540351685 (1.06)^16 5080.703369
20 45 2000 2.396558193 (1.06)^15 4793.116386
21 46 2000 2.260903956 (1.06)^14 4521.807912
22 47 2000 2.13292826 (1.06)^13 4265.85652
23 48 2000 2.012196472 (1.06)^12 4024.392944
24 49 2000 1.898298558 (1.06)^11 3796.597117
25 50 2000 1.790847697 (1.06)^10 3581.695393
26 51 2000 1.689478959 (1.06)^9 3378.957918
27 52 2000 1.593848075 (1.06)^8 3187.696149
28 53 2000 1.503630259 (1.06)^7 3007.260518
29 54 2000 1.418519112 (1.06)^6 2837.038225
30 55 2000 1.338225578 (1.06)^5 2676.451155
31 56 2000 1.26247696 (1.06)^4 2524.95392
32 57 2000 1.191016 (1.06)^3 2382.032
33 58 2000 1.1236 (1.06)^2 2247.2
34 59 2000 1.06 (1.06)^1 2120
35 60 2000 1 1 2000
222869.5597

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Transcribed Image Text

You just celebrated your 25th birthday today. You plan to invest$2000 annually, with the first $2000 invested on your 26th birthdayand the last invested on your 60th birthday.What is the value of this investment on your 61st birthday ifall invested funds earn 6 percent annually?

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