Question #29507

I am doing a problem in which I have to determine the future value of an investment given the interest rate, period of time, and initial investment amount. The initial investment is $10,000, the interest rate is 5% per year, and I have to find the future value for each year up to 20 years. How do I solve this for the future value using Excel?

Expert's answer

You should write to 1 cell you initial investment (let it be the cell B2)inthe cell below write the next formula: =B2+B2*0.05 . To do it you should copy

=B2+B2*0.05 and paste it to the cell B3

Then you should move your mouse to the right bottom corner of cell B3 and

"stretch" it to the next 20 cells down

and your answer will be in the cell B22.

that`sall.

=B2+B2*0.05 and paste it to the cell B3

Then you should move your mouse to the right bottom corner of cell B3 and

"stretch" it to the next 20 cells down

and your answer will be in the cell B22.

that`sall.

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