Complete each requirement on a separate worksheet. Each requirement must have a user input section. Makeup and enter your own numbers for the user inputs for each requirement. Requirements: 1. Create a user input section for the user to input the annual effective interest rate and number of periods per year. Calculate the annual nominal interest rate. 2. The user can invest money at the end of each year. Create a user input section for the user to input the amount that they will invest at the end of each year. Using an annual interest rate of 9%, how much will the user have at the end of 7 years? 3. The user wants to save oney to buy a new car 10 years from today. The new car will cost $125,000. Create a user input section for the user to input the amount that they can invest at the beginning of each year. What annual interest rate will they need to earn to have enough cash to buy the car 10 years from today?
Complete each requirement on a separate worksheet. Each requirement must have a user input section. Makeup and enter your own numbers for the user inputs for each requirement. Requirements: 1. Create a user input section for the user to input the annual effective interest rate and number of periods per year. Calculate the annual nominal interest rate. 2. The user can invest money at the end of each year. Create a user input section for the user to input the amount that they will invest at the end of each year. Using an annual interest rate of 9%, how much will the user have at the end of 7 years? 3. The user wants to save oney to buy a new car 10 years from today. The new car will cost $125,000. Create a user input section for the user to input the amount that they can invest at the beginning of each year. What annual interest rate will they need to earn to have enough cash to buy the car 10 years from today?
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:Complete each requirement on a separate worksheet.
Each requirement must have a user input section.
Makeup and enter your own numbers for the user inputs for each requirement.
Requirements:
1. Create a user input section for the user to input the annual effective interest rate and
number of periods per year. Calculate the annual nominal interest rate.
2.
The user can invest money at the end of each year. Create a user input section for the user
to input the amount that they will invest at the end of each year. Using an annual interest
rate of 9%, how much will the user have at the end of 7 years?
3. The user wants to save money to buy a new car 10 years from today. The new car will
cost $125,000. Create a user input section for the user to input the amount that they can
invest at the beginning of each year. What annual interest rate will they need to earn to
have enough cash to buy the car 10 years from today?
4. The user wants to save $60,000.00 for a once in a lifetime round-the-world cruise
vacation. Create a user input section for the user to enter the amount of money that they
can invest at the end of every month. Assuming an annual interest rate of 9.00%, how
many years will it take to have the $60,000.00?
5. The user plans to invest money in a variable rate CD for the next 7 years. Create a user
input section for the user to input the amount of money that they will invest today. The
annual interest rate for the CD can vary from 2% to 8% (whole percentages only). Use
the RANDBETWEEN function to predict each year's annual interest rate (the annual
interest rate must be independently predicted for each year). Calculate how much money
the user will have at the end of the 7 years.
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Step 1: Explain nominal & effective interest rates
VIEWStep 2: 1. Create a user input section to calculate the annual nominal rate
VIEWStep 3: 2. Create a user input to show the amount at the end of 7 years at 9% APR.
VIEWStep 4: 3. Create a user input to calculate the percentage return required to reach a certain future value.
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