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Future Value of Increasing Deposits |
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Future Value of Increasing Deposits |
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Future Value of Increasing Deposits
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Future Value of Increasing Deposits |
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Future Value of Increasing Deposits |
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Calculate the account value in 20 years of a monthly deposit of $100 starting today, increasing by 2% per year. Assume a 6% rate of return.
Use the following values for the prompts:
Prompt |
Value |
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Type of Fund |
Future Value |
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Current Account Value |
0 |
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Type of Deposits |
Annual Increase by a % |
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# of Deposits/Year |
12 |
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Amount of Each Deposit |
100 |
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Deposits Made at |
Beginning of Period |
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Annual Increase in Deposit |
2 |
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Interest Rate |
6 |
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# of Years |
20 |
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Future Value |
Do not enter value |
Place the cursor on the Future Value prompt and click on the 'Calculate Cursor Line' button.
The account will grow to $53,297.73.
What would the account value be if deposits were increased annually by 3%?
Change the Annual Increase in Deposit to '3'
The account will grow to $57,864.01.