A B 1 Particulars Values 2 Future Value (FV) 3 Interest rate Compounded monthly (I/Y) |0.05 4 Monthly interest rate 5 Time period 200000 =B3/12 8 years |=8*12 |=PMT(B4,B6,,-B2) =B7*B6 =B2-BS 6 Total number of months(NPER) Monthly Deposit 8 Total amount deposited 7 Total interest earned

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
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A
1
Particulars
Values
200000
2 Future Value (FV)
3 Interest rate Compounded monthly (I/Y) 0.05
4 Monthly interest rate
5 Time period
6 Total number of months(NPER)
=B3/12
8 years
|=8*12
|=PMT(B4,B6,,-B2)
|=B7*B6
|=B2-BS
7
Monthly Deposit
8 Total amount deposited
Total interest earned
Transcribed Image Text:A 1 Particulars Values 200000 2 Future Value (FV) 3 Interest rate Compounded monthly (I/Y) 0.05 4 Monthly interest rate 5 Time period 6 Total number of months(NPER) =B3/12 8 years |=8*12 |=PMT(B4,B6,,-B2) |=B7*B6 |=B2-BS 7 Monthly Deposit 8 Total amount deposited Total interest earned
(d) Gabrielle needs $200,000 in eight years. She has set up a sinking fund that earns 5% compounded
monthly in order to have the amount in eight years?
(1) How much should she deposit each month?
(ii) How much interest is earned over the period?
Transcribed Image Text:(d) Gabrielle needs $200,000 in eight years. She has set up a sinking fund that earns 5% compounded monthly in order to have the amount in eight years? (1) How much should she deposit each month? (ii) How much interest is earned over the period?
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