For the below time value of money problems, complete using formulas in Excel on each separate tab. Mention any assumptions and support each decision made.
Question 1: You deposited $15,000 today and the interest rate is 8% annually. How much will you have in nine years?
Question 2: Tiff will receive a graduation gift of $10,000 from her parents in three years. If the discount rate is 7%, what would this present worth today?
Question 3: What's the present value of a twenty year ordinary annuity of $30,000 using a discount rate of 6%?
Question 4: You deposited $5,000 in an account paying 8% interest a year. How long will it take to double the amount?
Question 5: The Johnsons have $60,000 to use as a down payment on a home, and they want to borrow $240,000. The mortgage interest rate is 5%. If they make equal monthly payments for thirty years, how much they be paying each month?
Question 6: Tim pays $250 a month into his 401K retirement plan. After thirty years, he will have $500,000. What average annual rate of interest will he earned?
Question 7: In 2001 Charlotte's firm had sales of $525,000. By 2012, sales went up to $1,200,000. What's the average annual rate of increase?
Question 8: Alan had saved up $500,000 so far. How much more must he save per year over the next ten years in order to have a total of $2 million? Alan earns 5% interest, compounded each year.