Question

What is the future value of an investment which compounds annually at 5% and starts at $1100 in the first year and grows by 5% per year (starting in the second year) for 20 years?

Answer 1

Year	Cashflows	FVF at 5%	Future value
1	1100	2.52695	2779.645
2	1155	2.406619	2779.645
3	1212.75	2.292018	2779.645
4	1273.388	2.182875	2779.645
5	1337.057	2.078928	2779.645
6	1403.91	1.979932	2779.645
7	1474.105	1.885649	2779.645
8	1547.81	1.795856	2779.645
9	1625.201	1.710339	2779.645
10	1706.461	1.628895	2779.645
11	1791.784	1.551328	2779.645
12	1881.373	1.477455	2779.645
13	1975.442	1.4071	2779.645
14	2074.214	1.340096	2779.645
15	2177.925	1.276282	2779.645
16	2286.821	1.215506	2779.645
17	2401.162	1.157625	2779.645
18	2521.22	1.1025	2779.645
19	2647.281	1.05	2779.645
20	2779.645	1	2779.645
Future values			55592.9