Hello:  Need help understanding how to calculate this annuity due. When I plug in my numbers for FV in excel I get an astronomical number: Values using below:  RATE: 0.55 PMT: -150 NPER: 40 PV = 0  TYPE 1    Starting today, Alicia is going to contribute $100 a month to her retirement account. Her employer matches her contribution by 50 percent. If these contributions remain constant, and she earns a monthly rate of 0.55 percent, how much will her savings be worth 40 years from now?

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.