You just celebrated your 25th birthday today. You plan to invest $2000 annually, with the first...

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You just celebrated your 25th birthday today. You plan to invest$2000 annually, with the first $2000 invested on your 26th birthdayand the last invested on your 60th birthday.
What is the value of this investment on your 61st birthday ifall invested funds earn 6 percent annually?

Answer & Explanation Solved by verified expert

4.4 Ratings (887 Votes)

Ans: $ 222,869.55

Years		Annuity payment(A)	future value factor(B)	future value factor	Future value(A*B)
1	26	2000	7.251025276	(1.06)^34	14502.05055
2	27	2000	6.840589883	(1.06)^33	13681.17977
3	28	2000	6.453386682	(1.06)^32	12906.77336
4	29	2000	6.088100643	(1.06)^31	12176.20129
5	30	2000	5.743491173	(1.06)^30	11486.98235
6	31	2000	5.418387899	(1.06)^29	10836.7758
7	32	2000	5.111686697	(1.06)^28	10223.37339
8	33	2000	4.822345941	(1.06)^27	9644.691881
9	34	2000	4.549382963	(1.06)^26	9098.765926
10	35	2000	4.29187072	(1.06)^25	8583.741439
11	36	2000	4.048934641	(1.06)^24	8097.869283
12	37	2000	3.819749662	(1.06)^23	7639.499323
13	38	2000	3.603537417	(1.06)^22	7207.074833
14	39	2000	3.399563601	(1.06)^21	6799.127201
15	40	2000	3.207135472	(1.06)^20	6414.270944
16	41	2000	3.025599502	(1.06)^19	6051.199004
17	42	2000	2.854339153	(1.06)^18	5708.678306
18	43	2000	2.692772786	(1.06)^17	5385.545572
19	44	2000	2.540351685	(1.06)^16	5080.703369
20	45	2000	2.396558193	(1.06)^15	4793.116386
21	46	2000	2.260903956	(1.06)^14	4521.807912
22	47	2000	2.13292826	(1.06)^13	4265.85652
23	48	2000	2.012196472	(1.06)^12	4024.392944
24	49	2000	1.898298558	(1.06)^11	3796.597117
25	50	2000	1.790847697	(1.06)^10	3581.695393
26	51	2000	1.689478959	(1.06)^9	3378.957918
27	52	2000	1.593848075	(1.06)^8	3187.696149
28	53	2000	1.503630259	(1.06)^7	3007.260518
29	54	2000	1.418519112	(1.06)^6	2837.038225
30	55	2000	1.338225578	(1.06)^5	2676.451155
31	56	2000	1.26247696	(1.06)^4	2524.95392
32	57	2000	1.191016	(1.06)^3	2382.032
33	58	2000	1.1236	(1.06)^2	2247.2
34	59	2000	1.06	(1.06)^1	2120
35	60	2000	1	1	2000
					222869.5597

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Transcribed Image Text

You just celebrated your 25th birthday today. You plan to invest$2000 annually, with the first $2000 invested on your 26th birthdayand the last invested on your 60th birthday.What is the value of this investment on your 61st birthday ifall invested funds earn 6 percent annually?