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3. you are considering a savings plan that calls for a...

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

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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