how to find returns for lump sum & yearly investments

[jackoat]

To all you kind n intelligent souls out there,

I need help to solve the following:

A lump sum of $10,000 is invested in a fund for 20 years. Thereafter
an additional yearly investment of $1200 is made every anniversary til
the end of the 20 year period. (i.e. a lump sum of 10,000 + 20 yearl
payments of $1200). If the compounded interest is 5% for the first te
years and 7% for the remaining ten years, what is the future value tha
I can expect at the end of the 20 year period? What Excel functions ca
I use?

Thanks for your help!

Jac

 

[Bernard Liengme]

Use FV. You will need one formula for the first ten years, then use its
result as the Present Value for the computation of the next 10 years at the
new rate.