Excel file included

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Answered Same DayOct 08, 2021

Answer To: Excel file included

Shakeel answered on Oct 08 2021
134 Votes
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        A couple of notes regarding this assignment:
        1. The due date of this assignment is October 8th, by 5 pm.
        2. You only need to submit this Excel workbook, nothing else.
        3. Submit your assignment via the eClass porta
l.
        4. Name your assignment file as: AREC433633_Assignment1_YourName
        5. In addition to mathematical calculations and function applications, please also pay attention to readability and clarity. Format cells/colums/graphs appropriately; add comments as needed.
Question1
    Question 1. Answer the following short questions using Excel (either the Excel built-in functions, or math formulas, or both). (30 points in total, 3 points each)
    Note: to help you get started, I highted the cells need your inputs.
    a. Find the FV of $5,000 invested to earn 8% after 5 years. Answer this question by using a math formula and also by using the Excel function.
        Inputs:    PV =    5000
            r =    8%
            T =    5
        Math formula            PV*(1+r)^T
        Excel function            $7,346.64
    b. Now create a table that shows the FV at 0%, 5%, and 20% for 0, 1, 2, 3, 4, and 5 years. Then create a graph with years on the horizontal axis and FV on the vertical axis to display your results.
            Interest rate
        Year    0%    5%    10%    20%
        0    $5,000.00    $5,000.00    $5,000.00    $5,000.00
        1    $5,000.00    $5,250.00    $5,500.00    $6,000.00
        2    $5,000.00    $5,512.50    $6,050.00    $7,200.00
        3    $5,000.00    $5,788.13    $6,655.00    $8,640.00
        4    $5,000.00    $6,077.53    $7,320.50    $10,368.00
        5    $5,000.00    $6,381.41    $8,052.55    $12,441.60
    c. Find the PV of $5,000 due in 5 years if the discount rate is 8%. Again, work the problem with a formula and also by using the function.
        Inputs:        FV =    5000
                r =    8%
                T =    5
        Math formula:                FV/(1+r)T
        Excel function                $3,402.92
    d. A security has a cost of $5,000 and will return $10,000 after 5 years. What rate of return does the security provide?
        Inputs:    PV =    5000
            FV =    10000
            r =    15%
            T =    5
        Excel function        (FV/PV)^(1/T)-1
    e. Find the PV of an annuity that pays $8,000 at the end of each of the next 5 years if the interest rate is 12%. Then find the FV of that same annuity.
    Inputs:        PMT =        $ 8,000
            T =        5
             r =        12%
    Excel function            PV =    $28,838.21
    Excel function            FV =    $50,822.78
    f. How would the PV and FV of the...
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