Assignment
o Enter the information for the following problem below. I am not asking you to solve the problem, I just want you to write down what you would enter for each part, and then I want you to write out what the formula would be in excel using each and every part. I want the formula to find out how much I need to invest today to have a dollar in 5 years if it was invested at 2% compounded annually.
PV
FV
PMT Not applicable as we will cover next week in annuities, so please enter 0 in the formula below.
NPER
RATE
TYPE
Excel formula =__(__, __, 0, __, __)
o How would the numbers change if it was compounded monthly?
PV
FV
PMT Not applicable as we will cover next week in annuities, so please enter 0 in the formula below.
NPER
RATE
TYPE
Excel formula =__(__, __, 0, __, __)
o You deposit $ 760 in an account one time that compounds monthly at 2 percent. How much will you have in your account at the end of 10 years?
o A balloon payment of $ 21,000 on your house is due in 10 years. If you can earn an average of 5 percent per year for the 10- year period, how much must you place into an account today to have the $ 21,000 in 10 years?
o If you want an effective rate of 5 percent, what is an acceptable quoted rate if money is compounded monthly?
o If inflation averages 4 percent per year, how much purchasing power will $ 1.00 loose in 10 years?
o At the beginning of each year, you deposit the following into a growth mutual fund that earns 6 percent per year: Year Deposit
1 5,000.00
2 7,500.00
3 4,500.00
4 5,500.00
5 6,200.00
Total 28,700.00?
How much should the fund be worth at the end of 5 years?
o Rochelle Kotter wants to attend a university 5 years from now. She will need $ 88,000. Assume Rochelle's bank pays 3 percent interest for a 5- year CD compounded monthly. What must Rochelle deposit today to accumulate $ 88,000 in 5 years?
Format your homework according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.