Finance Excel Formulas

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account_balance_wallet \$15

Question description

Calculate the following time value of money problems using Microsoft® Excel®:

1. If we place \$8,592.00 in a savings account paying 7.5 percent interest compounded annually, how much will our account accrue to in 9.5 years?
2. What is the present value of \$992 to be received in 13.5 years from today if our discount rate is 3.5 percent?
3. If you bought a stock for \$45 dollars and could sell it fifteen years later for three times what you originally paid. What was your return on owning this stock?
4. Suppose you bought a house for \$3,250,000 to make it a nursing home in the future. But you have not committed to the project and will decide in nine years whether to go forward with it or sell off the house. If real estate values increase annually at 1.5%, how much can you expect to sell the house for in nine years if you choose not to proceed with the nursing home project?
5. If your daughter wants to earn \$215,000 within the next twenty-three years and the salaries grow at 4.45% per year. What salary should she start to reach her goal?

All questions need to be answered in the attached excel sheet using formulas. Additional instructions on use of excel for this assignment are included in sheet one of the attachment.

Instructions 1. You have five problems - one on each tab of this Excel file. 2. Please show your work in the cells. Use Excel formulas instead of writing the values/answers directly in the cell. The instructor will then know where you made a mistake and provide you valuable feedback and partial credit (if Total Points: 8 e feedback and partial credit (if appropriate). If we place \$8,592.00 in a savings account paying 7.5 percent interest compounded annually, how much will our acco FV = PV × (1 + i)n Present Value (PV) Interest Rate (i) Number of years (n) 8592 0.075 9.5 Answer- Refer to the Solved Example 2 on Page 49 of your text. how much will our account accrue to in 9.5 years? What is the present value of \$992 to be received in 13.5 years from today if our discount rate is 3.5 percent? Future Value (FV) Interest Rate (i) Number of years (n) 992 0.035 13.5 Answer- Refer to the Solved Example 5 on Page 52 of your text. is 3.5 percent? If you bought a stock for \$45 dollars and could sell it fifteen years later for three times what you originally paid. Wha Future Value (FV) Present Value (PV) Number of years (n) 135 45 15 Answer- Refer to the Solved Example 6 on Page 53 of your text. ou originally paid. What was your return on owning this stock? Suppose you bought a house for \$3,250,000 to make it a nursing home in the future. But you have not committed to t If real estate values increase annually at 1.5%, how much can you expect to sell the house for in nine years if it choos FV = PV × (1 + i)n Present Value (PV) Interest Rate (i) Number of years (n) 3250000 0.015 9 Answer- Refer to the Solved Example 2 on Page 49 of your text. have not committed to the project and will decide in nine years whether to go forward with it or sell off the house. ell off the house. If your daughter wants to earn \$215,000 within the next twenty-three years and the salaries grow at 4.45% per year. W Future Value (FV) Interest Rate (i) Number of years (n) 215000 0.0445 23 Answer- Refer to the Solved Example 5 on Page 52 of your text. ow at 4.45% per year. What salary should she start to reach her goal?

Manal25
School: New York University

Hi there :)I am already done :) Pleas...

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Anonymous
Totally impressed with results!! :-)

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