Your generous grandmother has just announced that she’s opened a savings account for you with a deposit of $10,000. Moreover, she intends to make you 9 more similar gifts, at the end of this year, next year, etc. If the savings account pays 8% interest, how much will you have accumulated at the end of 10 years (one year after the last gift)?

Suggestion: Do this problem 2 ways, as shown below: a) take each amount and calculate its future value in year 10 (as illustrated in cells C7:C16) and then sum them; b) use Excel’s FV function, noting that here the amounts come at the beginning of the year (you’ll need to enter “1” in the Type option as described in Section 1).