Complete the given questions using an Excel spreadsheet. Question responses must contain all givens, equations, and the process in which the question is solved. Each and every student is responsible for completing their own response to the questions.
1. What is the amount of interest earned on $6,500 for seven years at 10% simple interest per year?
2. You deposit $10,000 in a savings account that earns 8% simple interest per year. How many years will it take to double your balance? If, instead, you deposit the $10,000 in another savings account that earns 6% compounded yearly, how many years will it take to double your balance?
3. Suppose you have the option of receiving either $5,000 at the end of five years or P dollars today. Currently, you have no need for the money, so you could deposit the P dollars into a bank account that pays 9% interest compounded annually. What value of P would make you indifferent in your choice between P dollars today and the promise of $5,000 at the end of five years?
4. Which of the following alternatives would you choose, assuming an interest rate of 10% compounded annually?
1. Receive $400 today.
2. Receive $600 four years from now.
3. Receive $800 eight years from now.
5. State the amount accumulated by a present investment of $4,500 in four years at 7% compounded annually.
6. State the present worth of the future payment of $9,250 six years from now at 9% compounded annually.