Use Excel to answer the following questions.If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account?If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%?You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years?You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?

PV=FV/(1+i)^n (PV= present value FV= Future value i= discount rate n= Number of period ) FV=…

Answered: If you would like to accumulate $4,200…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use Excel to answer the following questions.

If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account?
If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%?
You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years?
You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?

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