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#1
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Which Finance Function should i use to solve this
Work four summers, starting at age 16
Save the income in a Roth IRA account Invest it in a simple, low-cost equity portfolio Simmer slowly for 47 years Serve ungarnished (and untaxed) at age 67 If your money is invested in common stocks and you achieve the average compound annual rate on large-capitalization U.S. stocks, 10.7%, your account will grow to $9,378 at the end of the fourth year. You will be 20 years old. Invested in the same way, with no additional savings, the account will grow to: $25,917 by the time you are 30 $71,625 by the time you are 40 $197,943 by the time you are 50 $547,037 by the time you are 60 And $1,114,423 by the time you are 67 is there a function that will give me this answer without using multiple rows and columns to calculate this. |
#2
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Which Finance Function should i use to solve this
account will grow to $9,378 at the end of the fourth year.
You will be 20 years old. $25,917 by the time you are 30 $71,625 by the time you are 40 Hi. We first need to figure out what you invested at age 16. (Here in A1). [A1] =PV(10.7%,4,,9378) ($6,244.82) Check you figures when we are 30 (14 years later) =FV(10.7%,14,,A1) $25,917.10 And 40... =FV(10.7%,24,,A1) $71,624.67 All values seem to check... - HTH. :) Dana DeLouis Windows XP, Office 2003 wrote in message ups.com... Work four summers, starting at age 16 Save the income in a Roth IRA account Invest it in a simple, low-cost equity portfolio Simmer slowly for 47 years Serve ungarnished (and untaxed) at age 67 If your money is invested in common stocks and you achieve the average compound annual rate on large-capitalization U.S. stocks, 10.7%, your account will grow to $9,378 at the end of the fourth year. You will be 20 years old. Invested in the same way, with no additional savings, the account will grow to: $25,917 by the time you are 30 $71,625 by the time you are 40 $197,943 by the time you are 50 $547,037 by the time you are 60 And $1,114,423 by the time you are 67 is there a function that will give me this answer without using multiple rows and columns to calculate this. |
#3
Posted to microsoft.public.excel.worksheet.functions
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Which Finance Function should i use to solve this
Or perhaps if a cell/cells have the range name "Age", then ...
=9378*POWER(1+10.7%, Age-20) or... =FV(10.7%,Age-20,,-9378) -- HTH. :) Dana DeLouis Windows XP, Office 2003 "Dana DeLouis" wrote in message ... account will grow to $9,378 at the end of the fourth year. You will be 20 years old. $25,917 by the time you are 30 $71,625 by the time you are 40 Hi. We first need to figure out what you invested at age 16. (Here in A1). [A1] =PV(10.7%,4,,9378) ($6,244.82) Check you figures when we are 30 (14 years later) =FV(10.7%,14,,A1) $25,917.10 And 40... =FV(10.7%,24,,A1) $71,624.67 All values seem to check... - HTH. :) Dana DeLouis Windows XP, Office 2003 wrote in message ups.com... Work four summers, starting at age 16 Save the income in a Roth IRA account Invest it in a simple, low-cost equity portfolio Simmer slowly for 47 years Serve ungarnished (and untaxed) at age 67 If your money is invested in common stocks and you achieve the average compound annual rate on large-capitalization U.S. stocks, 10.7%, your account will grow to $9,378 at the end of the fourth year. You will be 20 years old. Invested in the same way, with no additional savings, the account will grow to: $25,917 by the time you are 30 $71,625 by the time you are 40 $197,943 by the time you are 50 $547,037 by the time you are 60 And $1,114,423 by the time you are 67 is there a function that will give me this answer without using multiple rows and columns to calculate this. |
#4
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Which Finance Function should i use to solve this
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#5
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Which Finance Function should i use to solve this
Investment made at 16 was 2000
Dana DeLouis wrote: account will grow to $9,378 at the end of the fourth year. You will be 20 years old. $25,917 by the time you are 30 $71,625 by the time you are 40 Hi. We first need to figure out what you invested at age 16. (Here in A1). [A1] =PV(10.7%,4,,9378) ($6,244.82) Check you figures when we are 30 (14 years later) =FV(10.7%,14,,A1) $25,917.10 And 40... =FV(10.7%,24,,A1) $71,624.67 All values seem to check... - HTH. :) Dana DeLouis Windows XP, Office 2003 wrote in message ups.com... Work four summers, starting at age 16 Save the income in a Roth IRA account Invest it in a simple, low-cost equity portfolio Simmer slowly for 47 years Serve ungarnished (and untaxed) at age 67 If your money is invested in common stocks and you achieve the average compound annual rate on large-capitalization U.S. stocks, 10.7%, your account will grow to $9,378 at the end of the fourth year. You will be 20 years old. Invested in the same way, with no additional savings, the account will grow to: $25,917 by the time you are 30 $71,625 by the time you are 40 $197,943 by the time you are 50 $547,037 by the time you are 60 And $1,114,423 by the time you are 67 is there a function that will give me this answer without using multiple rows and columns to calculate this. |
#6
Posted to microsoft.public.excel.worksheet.functions
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Which Finance Function should i use to solve this
wrote:
Investment made at 16 was 2000 Although that is not relevant to the question you asked because you assumed that you (will) have $9378 by age 20 somehow, if you are going into the 2nd summer of work now, you will need to invest an average of $1728 after each of the remaining 3 summers in order to accumulate $9378 in assets at an average growth of 10.7%. This is given by the following formula: =pmt(10.7%, 3, -2000*(1+10.7%), 9378, 1) |
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