Question

You want to save at least $10,000 for a down payment on a new car. In cell B6, enter a formula to calculate how much you will have saved by putting away $500 per month for 24 months at a 1.5% annual interest rate. Use the appropriate cell references. Remember to use a negative value for the Pmt argument. There is no money in the account yet and payments are applied at the end of every month, so omit both the Pv and Type arguments. (Hint: Use the FV function.)

Answer 1

Answer:

$14,316.76

Explanation:

How much you will have saved?

Using MS Excel to calculate the FV function

= FV(Rate, Nper, Pmt)

= FV(1,5%, 24, 500)

= 14316.7604

= $14,316.76

So, the total amount you will have saved by putting away $500 per month for 24 months at a 1.5% annual interest rate is $14,316.76