Suppose you can save $200 per month for 40 years, starting today. The interest rate is 0.5% per month. (That is, 6% per year)
(a) In 40 years from now, how much would the first $200 saved be worth?
(b) Mathematically write down the expression that would calculate the future value of this saving scheme? Annuity future value =
(c) Compute the future value of this saving scheme. It is recommended to use Excel or spreadsheet program. You may use =FV() formula or manual cell computation in the program. What is the formula you use to obtain the answer?