2. Use the worksheet tab Problem 2 A-FV Retirement and Problem 2 B-PV Invest C look! Excel File Home Insert Draw Page Layout Formulas Data Review <-11 Deputa A A A- Font fr Parte KIS X = Cali B Return Rate Investment Duration in Years Amount Invested Future Investment Value Retirement Plan Return Rate 9 Investment Duration in Years 10 Monthly Payroll Deduction 11 Company Match 12 Monthly Investment 13 Current Balance One-Time Investment Scenario 5.500% 14 Future Investment Value 15 16 17 18 D Accessibility: Investigate O DI Sheet1 Sheet2 Scenario Return Rate Alignment 13 7500 4.500% 35 500 50% 750 $10,000.00 General 100- $-% 28 28 D P Search View Automate Help Acrobat Conditional Formatting - Format as Table- - Call Styles Goal seek Future Savings Value at $20,000 Future Savings Value at $25,000 Insert - Delete H) Format - O Edining H Retirement plan Goal Seek Solution by changing Return Rate-Goal seek Retirement Amount at $1,000,000 Retirement Amount at $1,200,000 88 • Retirement Amount at $1,000,000 • Retirement Amount at $1.200.000 Display Settings Asela Thomason SCADE Analyze Data m 69°F Sunny Comments a. Calculating Future Value • Calculate the Future Value of the One-time Investment. • Calculate the Future Value of the Retirement Plan. • Use Goal Seek to Determine the Necessary Return Rate required to yield the following: On-time-Investment Goal Seek Solution by changing • Future Savings Value at $20,000 • Future Savings Value at $25,000 Retirement plan Goal Seek Solution by changing Return Rate D Create PDF Create PDF and and Share link Share via Outlook Adobe Acrobat O e Share 607 PM 10/22/2023 5
2. Use the worksheet tab Problem 2 A-FV Retirement and Problem 2 B-PV Invest C look! Excel File Home Insert Draw Page Layout Formulas Data Review <-11 Deputa A A A- Font fr Parte KIS X = Cali B Return Rate Investment Duration in Years Amount Invested Future Investment Value Retirement Plan Return Rate 9 Investment Duration in Years 10 Monthly Payroll Deduction 11 Company Match 12 Monthly Investment 13 Current Balance One-Time Investment Scenario 5.500% 14 Future Investment Value 15 16 17 18 D Accessibility: Investigate O DI Sheet1 Sheet2 Scenario Return Rate Alignment 13 7500 4.500% 35 500 50% 750 $10,000.00 General 100- $-% 28 28 D P Search View Automate Help Acrobat Conditional Formatting - Format as Table- - Call Styles Goal seek Future Savings Value at $20,000 Future Savings Value at $25,000 Insert - Delete H) Format - O Edining H Retirement plan Goal Seek Solution by changing Return Rate-Goal seek Retirement Amount at $1,000,000 Retirement Amount at $1,200,000 88 • Retirement Amount at $1,000,000 • Retirement Amount at $1.200.000 Display Settings Asela Thomason SCADE Analyze Data m 69°F Sunny Comments a. Calculating Future Value • Calculate the Future Value of the One-time Investment. • Calculate the Future Value of the Retirement Plan. • Use Goal Seek to Determine the Necessary Return Rate required to yield the following: On-time-Investment Goal Seek Solution by changing • Future Savings Value at $20,000 • Future Savings Value at $25,000 Retirement plan Goal Seek Solution by changing Return Rate D Create PDF Create PDF and and Share link Share via Outlook Adobe Acrobat O e Share 607 PM 10/22/2023 5
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:2. Use the worksheet tab **Problem 2 A-FV Retirement** and **Problem 2 B-PV Invest**
### a. Calculating Future Value
- **Calculate the Future Value** of the One-time Investment.
- **Calculate the Future Value** of the Retirement Plan.
- **Use Goal Seek** to Determine the Necessary Return Rate required to yield the following:
#### One-time-Investment Goal Seek Solution by changing Return Rate
- Future Savings Value at $20,000
- Future Savings Value at $25,000
#### Retirement plan Goal Seek Solution by changing Return Rate
- Retirement Amount at $1,000,000
- Retirement Amount at $1,200,000
### Explanation of the Diagram
The diagram is a screenshot of an Excel spreadsheet showing various financial calculations related to investment and retirement planning. The worksheet includes columns for one-time investment scenarios, expected return rates, and goal-based values. It also mentions "Goal Seek," which is used to find the necessary return rates to achieve specific future savings or retirement amounts.
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