Complete the following 7 Wk 3 Financial Exercises: Problem Set 1, Part 1 questions using either the financial functions in Excel® or the Present Value and Future Value formulas shown: Present value formula: Future value formula: Question 1. If you want to have $60,000 in 8 years, how much do you need to deposit in the bank today if the account pays an interest rate of 9%? 2. What will $110,000 grow to be in 9 years if it is invested today at 11%? 3. You would like to have $200,000 in a college fund in 15 years. How much do you need today if you expect to earn 12% while you are investing to pay for your child's college? 4. You have been offered $3,000 in 4 years for providing $2,000 today into a business venture with a friend. If interest rates are 10%, is this a good investment for you? 5. What will $82,000 grow to be in 11 years if it is invested today at 8% and the interest rate is compounded monthly? 6. How many years will it take for $136,000 to grow to $468,000 if it is invested in an account with an annual interest rate of 8%? 7. At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years? PV=FV * 1/(1+i)^n FV=PV*(1+i)^n Answer Insert your answer. Insert your answer. Insert your answer. Insert your answer. Insert your answer. Insert your answer. Insert your answer.
Complete the following 7 Wk 3 Financial Exercises: Problem Set 1, Part 1 questions using either the financial functions in Excel® or the Present Value and Future Value formulas shown: Present value formula: Future value formula: Question 1. If you want to have $60,000 in 8 years, how much do you need to deposit in the bank today if the account pays an interest rate of 9%? 2. What will $110,000 grow to be in 9 years if it is invested today at 11%? 3. You would like to have $200,000 in a college fund in 15 years. How much do you need today if you expect to earn 12% while you are investing to pay for your child's college? 4. You have been offered $3,000 in 4 years for providing $2,000 today into a business venture with a friend. If interest rates are 10%, is this a good investment for you? 5. What will $82,000 grow to be in 11 years if it is invested today at 8% and the interest rate is compounded monthly? 6. How many years will it take for $136,000 to grow to $468,000 if it is invested in an account with an annual interest rate of 8%? 7. At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years? PV=FV * 1/(1+i)^n FV=PV*(1+i)^n Answer Insert your answer. Insert your answer. Insert your answer. Insert your answer. Insert your answer. Insert your answer. Insert your answer.
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
Related questions
Question
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Complete the following 7 Wk 3 Financial Exercises:
Problem Set 1, Part 1 questions using either the
financial functions in Excel® or the Present Value and
Future Value formulas shown:
Present value formula:
Future value formula:
Question
1. If you want to have $60,000 in 8 years, how much
do you need to deposit in the bank today if the
account pays an interest rate of 9%?
2. What will $110,000 grow to be in 9 years if it is
invested today at 11%?
3. You would like to have $200,000 in a college fund
in 15 years. How much do you need today if you
expect to earn 12% while you are investing to pay for
your child's college?
4. You have been offered $3,000 in 4 years for
providing $2,000 today into a business venture with a
friend. If interest rates are 10%, is this a good
investment for you?
5. What will $82,000 grow to be in 11 years if it is
invested today at 8% and the interest rate is
compounded monthly?
6. How many years will it take for $136,000 to grow to
$468,000 if it is invested in an account with an annual
interest rate of 8%?
7. At what interest rate must $112,000 be invested so
that it will be worth $392,000 in 14 years?
PV=FV* 1/(1+i)^n
FV = PV*(1+i)^n
Answer
Insert your answer.
Insert your answer.
Insert your answer.
Insert your answer.
Insert your answer.
Insert your answer.
Insert your answer.
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