8/18/2019 (3) FV ANNUITIES-PROBLEM CASH FLOW FORMULA EL-733A MS EXCEL 1.pdf

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(3)-PROBLEM -If 3 annual deposits of P 2,000 each are placed in an account,how much money has accumulated after the last deposit ?

SOLUTIONS

CASH FLOW DIAGRAM

Compound amount of one per period

FV = ?

i = 10%

1 2 3

PMT = P 2,000 Future of one / period

Formula : Amount of 1 / period

FORMULA BASE SOLUTION : 

FV = PMT [(1 + i )n – 1]/i )

1.13 – 1 = 0.3310 /.i

= 3.31

= P2,000 (3.31)

FV = P6,620

CALCULATOR BASE EL-733A SOLUTION FIN MODE

FV = P6,620.00

EXCEL BASE SOLUTION =FV(B3,B2,B1) 

Payment 2000

Years, n 3AnnualRate, i 10%

FV ($6,620.00)

2ndF CA 2ndF TAB 2

3 [n] 10 [i] 2000 [PMT] COMP [FV]