excel 2

xlsx

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Temple University *

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3901

Subject

Finance

Date

Apr 3, 2024

Type

xlsx

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12

Uploaded by joeyleone

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ADVANCED PROBLEM 4-1 FOR SPREADSHEET APPLICATION Given Data Annual growth rate Money market account 2.5% Government bond mutual fund 5.5% Large capital mutual fund 9.5% Small capital mutual fund 12.0% Real estate trust fund 4.0% Solution Year Money Market Government Bonds Large Capital 0 1 $4,000.00 $4,000.00 $4,000.00 2 $8,100.00 $8,220.00 $8,380.00 3 $12,302.50 4 5 6 7 8 Future value with an annuity. Thelma and Thomas want to retire with $2,000,000 five different accounts ($4,000 per account). They have set up the following accou a. Using a spreadsheet, calculate the end-of-year balance for the portfolio with the funds into any of these accounts above the $4,000 annual contribution to each acco goal? b. Thelma and Thomas decide that making equal contributions to the funds is not t money market account, $4,000 to the government bond mutual fund, $5,000 to the $3,000 to the real estate trust fund. How much sooner will they reach their $2,000, time as in part ( a ), how much more will they have in their retirement account? a. Using a spreadsheet, calculate the end-of-year balance for the portfolio with the funds into any of these accounts above the $4,000 annual contribution to each acco goal?
9 10 11 12 $83,008.71 13 14 $81,170.29 15 16 $77,520.90 17 18 19 20 21 22 23 24 25 $364,983.73 26 27 $235,956.44 28 29 $167,425.18 30 How long will it be until Thelma and Thomas reach their $2,000,000 retire Year Money Market Government Bonds Large Capital 0 1 $2,000.00 $4,000.00 $5,000.00 2 $4,050.00 $8,220.00 $10,475.00 3 $6,151.25 4 5 b. Thelma and Thomas decide that making equal contributions to the funds is not t money market account, $4,000 to the government bond mutual fund, $5,000 to the $3,000 to the real estate trust fund. How much sooner will they reach their $2,000, time as in part ( a ), how much more will they have in their retirement account?
6 7 8 9 10 11 12 $103,760.89 13 14 $81,170.29 15 16 $38,760.45 17 18 19 20 21 22 23 24 25 $456,229.67 26 27 $235,956.44 28 29 $83,712.59 30 Requirements 1. Start Excel. How much sooner will they reach their $2,000,000 goal compared to the st If they retire at the same time as in part ( a ), how much more will they have
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2. 3. 4. 5. 6. 7. 8. 9. 10. In cell D22 , by using cell references, calculate the future value of the mone function and assume that all savings are made at the end of the period. Use relevant cell from the Given Data section. Note: The output of the function you typed in this cell is expected as a pos In cell E22 , by using cell references, calculate the future value of the gover FV function and assume that all savings are made at the end of the period. the relevant cell from the Given Data section. Note: The output of the function you typed in this cell is expected as a pos In cell F22 , by using cell references, calculate the future value of the large function and assume that all savings are made at the end of the period. Use relevant cell from the Given Data section. Note: The output of the function you typed in this cell is expected as a pos In cell G22 , by using cell references, calculate the future value of the smal function and assume that all savings are made at the end of the period. Use relevant cell from the Given Data section. Note: The output of the function you typed in this cell is expected as a pos In cell H22 , by using cell references, calculate the future value of the real e and assume that all savings are made at the end of the period. Use absolute cell from the Given Data section. Note: The output of the function you typed in this cell is expected as a pos In cell range D23:H50 , by using cell references, calculate the future values through 30. Copy the contents from cell range D22:H22 down the columns In cell I21 , by using cell references, calculate the current value of the total In cell range I22:I50 , by using cell references, calculate the future values o 30. Copy the function cell I18 down the columns to row 50 . In cell H52 , enter the number of years it will take for Thelma and Thomas numeric value.
11. 12. 13. 14. 15. 16. 17. 18. 19. 20. In cell D59 , by using cell references, calculate the future value of the mone function and assume that all savings are made at the end of the period. Use relevant cell from the Given Data section. Note: The output of the function you typed in this cell is expected as a pos In cell E59 , by using cell references, calculate the future value of the gover FV function and assume that all savings are made at the end of the period. the relevant cell from the Given Data section. Note: The output of the function you typed in this cell is expected as a pos In cell F59 , by using cell references, calculate the future value of the large function and assume that all savings are made at the end of the period. Use relevant cell from the Given Data section. Note: The output of the function you typed in this cell is expected as a pos In cell G59 , by using cell references, calculate the future value of the smal function and assume that all savings are made at the end of the period. Use relevant cell from the Given Data section. Note: The output of the function you typed in this cell is expected as a pos In cell H59 , by using cell references, calculate the future value of the real e and assume that all savings are made at the end of the period. Use absolute cell from the Given Data section. Note: The output of the function you typed in this cell is expected as a pos In cell range D60:H87 , by using cell references, calculate the future values through 30. Copy the contents from cell range D59:H59 down the columns In cell I58 , by using cell references, calculate the current value of the total In cell range I59:I87 , by using cell references, calculate the future values o 30. Copy the function cell I58 down the columns to row 87 . In cell H89 , enter the number of years earlier Thelma and Thomas will rea when entering a numeric value. In cell H91 , by using cell references, calculate the difference between the a same time as in part ( a ). Note: The output of the expression you typed in this cell is expected as a p
21. Save the workbook. Close the workbook and then exit Excel. Submit the w
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Small Capital Real Estate Portfolio Total $4,000.00 $4,000.00 $20,000.00 $8,480.00 $8,160.00 $41,340.00 $0.00 $36,856.91 0 in their portfolio. They plan on putting away $20,000 each year into unts and will make all their contributions at the end of each year. e assumption that Thelma and Thomas will not deposit any additional ount. How long will it be until they reach their $2,000,000 retirement to their advantage. They decide on annual contributions of $2,000 to the e large capital mutual fund, $6,000 to the small capital mutual fund, and ,000 goal compared to the strategy in part ( a )? If they retire at the same e assumption that Thelma and Thomas will not deposit any additional ount. How long will it be until they reach their $2,000,000 retirement
$70,194.94 $70,194.94 $81,170.29 $0.00 $127,876.81 $0.00 $418,411.58 $224,339.75 $224,339.75 ement goal? 29 years. Small Capital Real Estate Portfolio Total $6,000.00 $3,000.00 $12,720.00 $6,120.00 to their advantage. They decide on annual contributions of $2,000 to the e large capital mutual fund, $6,000 to the small capital mutual fund, and ,000 goal compared to the strategy in part ( a )? If they retire at the same
$27,642.68 $105,292.41 $0.00 $95,907.61 $0.00 $627,617.36 $0.00 $168,254.81 $168,254.81 2 years earlier. $0.00 Points 0 trategy in part ( a )? e in their account?
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1 1 1 1 1 1 1 1 1 ey market account at the end of year 2. Use the Excel FV e absolute references to the annual saving in cell D21 and the sitive number. rnment bond mutual fund at the end of year 2. Use the Excel Use absolute references to the annual saving in cell E21 and sitive number. capital mutual fund at the end of year 2. Use the Excel FV e absolute references to the annual saving in cell F21 and the sitive number. ll capital mutual fund at the end of year 2. Use the Excel FV e absolute references to the annual saving in cell G21 and the sitive number. estate trust fund at the end of year 2. Use the Excel FV function e references to the annual saving in cell H21 and the relevant sitive number. s of each of the five accounts at the end of each year for years 3 s to row 50 . portfolio at the end of year 1. Use the Excel SUM function. of the total portfolio at the end of each year for years 2 through to reach their goal. Do not use the equal sign when entering a
1 1 1 1 1 1 1 1 1 1 ey market account at the end of year 2. Use the Excel FV e absolute references to the annual saving in cell D58 and the sitive number. rnment bond mutual fund at the end of year 2. Use the Excel Use absolute references to the annual saving in cell E58 and sitive number. capital mutual fund at the end of year 2. Use the Excel FV e absolute references to the annual saving in cell F58 and the sitive number. ll capital mutual fund at the end of year 2. Use the Excel FV e absolute references to the annual saving in cell G58 and the sitive number. estate trust fund at the end of year 2. Use the Excel FV function e references to the annual saving in cell H58 and the relevant sitive number. s of each of the five accounts at the end of each year for years 3 s to row 50 . portfolio at the end of year 1. Use the Excel SUM function. of the total portfolio at the end of each year for years 2 through ach their goal in part ( b ) than in ( a ). Do not use the equal sign accounts in parts ( a ) and ( b ) if Thelma and Thomas retire at the positive number.
workbook as directed. 0
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