# Question

How much must you put into a 5 percent investment annually to have $ 75,000 eight years from now? Assume all payments are made at the end of each period. See earlier NOTE regarding requirements for Exercises.

A. Solve using a spreadsheet program such as Excel. Indicate the spreadsheet formula showing numeric values rather than cell references. For example, for the value that $ 100 today could grow to in two years, assuming 10 percent annual compounding, the spreadsheet solution formula would be: FV(10%, 2, 0, 100). Note that since there is no annuity payment (PMT) in this problem, it is necessary to show the blank between two commas or a zero after the number of periods. In addition, answer the questions using formulas with cell references.

B. Solve using a financial calculator. This is optional.

A. Solve using a spreadsheet program such as Excel. Indicate the spreadsheet formula showing numeric values rather than cell references. For example, for the value that $ 100 today could grow to in two years, assuming 10 percent annual compounding, the spreadsheet solution formula would be: FV(10%, 2, 0, 100). Note that since there is no annuity payment (PMT) in this problem, it is necessary to show the blank between two commas or a zero after the number of periods. In addition, answer the questions using formulas with cell references.

B. Solve using a financial calculator. This is optional.

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