Your cousin Alysa started to work two years ago and started to put money into her tax-free savings account. She wants to do a comparison of how the initial deposit amount affects the end result. She figures out that she would be able to make a deposit between $2000 and $5000 each year. She will make the deposit at the beginning of each year. She is always impressed with your Excel skills. She asks you to calculate this for her. Her tax-free saving account is a mutual fund account, since the return (rate) of the mutual fund varies, sometimes it could be negative, we will just assume that the rate varies from 3.5% to 8%. Therefore, in your calculation, you need to include the following annual interest/return rate: 3.5%, 4%, 4.5%, 5%, 5.5%, 6%, 6.5%, 7%, 7.5%, 8%. For the principal/deposit for each year, you will need to include: $2,000, $3,000, $4,000, $5000. 

Use a table to calculate how much Alysa would receive at the end of 30 years for different deposit amounts and rates. You must use the FV function. 

You must use a proper cell reference. You need to set up the formula in one Excel cell in such a way that you can drag and fill out the rest of the table. You have to format the entire table properly. Your entire table has to be easy to understand and read. 

(Note: you only need to do the calculation based on the numbers given in the case, you don’t need to calculate how much tax Alysa needs to pay if she withdraws the money from her tax-free saving account. You will need to google how the FV function can be used)

Answer rating: 100% (QA)

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