Question

Steve is considering investing $3,600 a year for 40 years. How much will this investment be worth at the end of the 40 years if he earns an average annual rate of return of 11.6 percent

Answer 1

It will be worth $2471686

Step-by-step explanation:

Please find the detailed answer as follows:

Nper = 40 (indicates the period)

Rate = 11.6% (indicates the rate of interest)

PMT = 3600 (indicates the amount of payment) (investment to be made by Steve)

PV = 0 (indicates present value if any)

FV = ? (indicates value after 40 Years)

The following calculation will be used:

Value after 40 Years = FV (Rate, Nper, PMT, PV)

= FV (11.60%,40,3600,0) = $24,71,685.70

Therefore, the Answer is $24,71,685.70 or $24,71,686 (rounded off )