Question

Steve is considering investing $4,261 a year for 30 years. How much will this investment be worth at the end of the 30 years if he earns an average annual rate of return of 11.7 percent? Assume Steve invests his first payment of the end of this year

Answer 1

$970,329.41

Step-by-step explanation:

For computing the amount worth at the end of the 30 years we need to find out the future value by applying the future value which is to be shown in the attachment

Given that,

Present value = $0

Rate of interest = 11.7%

NPER = 30 years

PMT = $4261

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after applying the above formula, the future value is $970,329.41