Future value on an investment of 750.00 every 6 months with 8% interest semiannually for 10yrs?

Question

Future value on an investment of 750.00 every 6 months with 8% interest semiannually for 10yrs?

Answer 1

I come up with $23,226.90 using my trusty MBA and excel

Answer 2

You can do this yourself using Excel.

Look for the funny looking "f" at the top near the tools bars.

Click on it, select Financial functions, then select FV.

Plug in your variables.

Don't forget to divide your interest rate by 2 and multiple your years by 2. (your dealing with compounding periods).

Also enter your PV as (-750.00) a negative number.

Use the HELP menu if you get stuck.

Answer 3

$22,333.56

Sorry NH Mike, check your math.

Excel comes up with the same answer.

=FV(0.04,20,-750,0)

Touche, forgot about the timing...

Answer 4

Future value of Annuity = PMT [((1 + i)n - 1) / i]

FVOA = Future Value of an Ordinary Annuity

    PMT = Amount of each payment

    i = Interest Rate Per Period

    n = Number of Periods

750 [(1+.08)^20-1/.08

750[(4.660957-1/.08]

750(3.660957/.08)

750(45.76196)

$34,321.47