This is an excel problem(use excel equation). Please show brief steps. And answe

Question

This is an excel problem(use excel equation). Please show brief steps. And answer my question.

I'm starting a retirement savings program

This is an excel problem(use excel equation). Please show brief steps. And answer my question.

I'm starting a retirement savings program

             and expect to need $2,000,000 in 40 years. I begin with a deposit of $700 and then deposit $500 per month at an interest rate of 0.400% per month         I also have a trust fund that will add $15,000 to the fund at the end of the 7 th year What will my monthly deposit need to be, beginning in year 8 , if my return increases to 0.900% per month?

Explanation / Answer

FV after 40years 200000 Interest Factor=(1.004)^(7*12) 1.398 Compond Value of Annuity at the end of 7th year=A*(F-1)/i=500*(1.398-1)/0.004 (A) 49750 FV of 700 deposited at the beginning at the end of 7th year=700*(1.004)^(7*12) (B) 978.88 Amount added on 7th year

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