Question

Your beginning salary is$70,000.Youdeposit12% at the end of each year in a savings account that earns 3% interest. Your salary increases by 2% per year. What value does your savings book show after 40 years?

please solve this question  on Excel sheet and showing the formula

Answer 1

Year	Salary	Deposit amount
1	70000	8400
2	71400.00	8568.00
3	72828.00	8739.36
4	74284.56	8914.15
5	75770.25	9092.43
6	77285.66	9274.28
7	78831.37	9459.76
8	80408.00	9648.96
9	82016.16	9841.94
10	83656.48	10038.78
11	85329.61	10239.55
12	87036.20	10444.34
13	88776.93	10653.23
14	90552.46	10866.30
15	92363.51	11083.62
16	94210.78	11305.29
17	96095.00	11531.40
18	98016.90	11762.03
19	99977.24	11997.27
20	101976.78	12237.21
21	104016.32	12481.96
22	106096.64	12731.60
23	108218.58	12986.23
24	110382.95	13245.95
25	112590.61	13510.87
26	114842.42	13781.09
27	117139.27	14056.71
28	119482.05	14337.85
29	121871.69	14624.60
30	124309.13	14917.10
31	126795.31	15215.44
32	129331.22	15519.75
33	131917.84	15830.14
34	134556.20	16146.74
35	137247.32	16469.68
36	139992.27	16799.07
37	142792.11	17135.05
38	145647.96	17477.75
39	148560.92	17827.31
40	151532.13	18183.86
	NPV	2,71,412.68
	Future worth	8,85,358.43

Showing formula in excel

Year	Salary	Deposit amount
1	70000	=B2*0.12
2	=B2*1.02	=B3*0.12
3	=B3*1.02	=B4*0.12
4	=B4*1.02	=B5*0.12
5	=B5*1.02	=B6*0.12
6	=B6*1.02	=B7*0.12
7	=B7*1.02	=B8*0.12
8	=B8*1.02	=B9*0.12
9	=B9*1.02	=B10*0.12
10	=B10*1.02	=B11*0.12
11	=B11*1.02	=B12*0.12
12	=B12*1.02	=B13*0.12
13	=B13*1.02	=B14*0.12
14	=B14*1.02	=B15*0.12
15	=B15*1.02	=B16*0.12
16	=B16*1.02	=B17*0.12
17	=B17*1.02	=B18*0.12
18	=B18*1.02	=B19*0.12
19	=B19*1.02	=B20*0.12
20	=B20*1.02	=B21*0.12
21	=B21*1.02	=B22*0.12
22	=B22*1.02	=B23*0.12
23	=B23*1.02	=B24*0.12
24	=B24*1.02	=B25*0.12
25	=B25*1.02	=B26*0.12
26	=B26*1.02	=B27*0.12
27	=B27*1.02	=B28*0.12
28	=B28*1.02	=B29*0.12
29	=B29*1.02	=B30*0.12
30	=B30*1.02	=B31*0.12
31	=B31*1.02	=B32*0.12
32	=B32*1.02	=B33*0.12
33	=B33*1.02	=B34*0.12
34	=B34*1.02	=B35*0.12
35	=B35*1.02	=B36*0.12
36	=B36*1.02	=B37*0.12
37	=B37*1.02	=B38*0.12
38	=B38*1.02	=B39*0.12
39	=B39*1.02	=B40*0.12
40	=B40*1.02	=B41*0.12
	NPV	=NPV(3%,C2:C41)
	Future worth	=FV(3%,40,,-C42)