# Question: you are considering a savings plan that calls for a...

###### Question details

You are considering a savings plan that calls for a deposit of $12,000 at the BEGINNING of each of the next five years. If the plan offers an interest rate of 8 percent, how much will you accumulate at the end of year 5?

Do this calculation by completing the following template using Excel. Your spreadsheet will do the FV calculation twice - once using the FV function (in Cell B4) and once using a simple table that shows the accumulation at the beginning of each year that would be similar to what you would show a client that does not understand future value accumulation very well. Please show all work in excel and functions being used (I am used to a financial calculator). Thanks!

A | B | C | D | |

1 | Annual payment | 12,000 | ||

2 | Interest rate | 8% | ||

3 | Number of years | 5 | ||

4 | Total value | <--Use FV function | ||

5 | ||||

6 | Year | Accumulation at beginning of year | Payment at end of year | Annual interest |

7 | 1 | 0 | 12,000 | 0 |

8 | 2 | 12,000 | 12,000 | |

9 | 3 | |||

10 | 4 | |||

11 | 5 | |||

12 | 6 |