This is a future value of an annuity question:
| 0 | 1 | 2 | 3 | 4 ... | 480 |
| 3 | 3 | 3 | 3 | 3 | |
| PV | FV |
You can calculate the PV of the annuity and then calculate the FV of that PV:
S99NOONQ1.2
2.Let's say you resolve to drink one less beer per month for the
next 40 years. Assume that this represents a savings of $3 per
month. If you take that extra $3 and invest it each month in your
retirement account, how much extra will you have when you retire
in 40 years? Assume your retirement account earns 12% per year,
compounded monthly.
This is a future value of an annuity question:
0 1 2 3 4 ... 480 3 3 3 3 3 PV FV You can calculate the PV of the annuity and then calculate the FV of that PV: