Description
Purpose of Assignment
The purpose of this assignment is to allow the students to understand and practice the measurement of present value, future value, and interest rate using Microsoft® Excel®.
Assignment Steps
Resources: Microsoft® Office® 2013 Accessibility Tutorials, Microsoft® Excel®, Time Value of Money Calculations Template
Calculate the following time value of money problems using Microsoft® Excel®:
- 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?
- What is the present value of $992 to be received in 13.5 years from today if our discount rate 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. 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 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?
- 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?
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Explanation & Answer
hello. How are you today? Please find the attachment below and let me know in case any questions or corrections you may have.
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
3. It is recommended to watch the assigned videos in week # 2.
Total Points: 8
e feedback and partial cred...