The following are two investment scenarios: Scenario 1: £8,000 at 6.5% with simple interest rate Scenario 2: £5,000 at 6.5% with annual compound interest rate In Excel, draw up a table with the following data: Scenario number, Capital, Interest rate, Type of Interest. Then, please create a dynamic process in the table to calculate the accrued interest each year for 45 years from now on, for each of the scenario. Graph the sums accrued and identify what year the sums accrued swap from one investment being the largest to the other.
The following are two investment scenarios: Scenario 1: £8,000 at 6.5% with simple interest rate Scenario 2: £5,000 at 6.5% with annual compound interest rate In Excel, draw up a table with the following data: Scenario number, Capital, Interest rate, Type of Interest. Then, please create a dynamic process in the table to calculate the accrued interest each year for 45 years from now on, for each of the scenario. Graph the sums accrued and identify what year the sums accrued swap from one investment being the largest to the other.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following are two investment scenarios:
Scenario 1: £8,000 at 6.5% with simple interest rate
Scenario 2: £5,000 at 6.5% with annual compound interest rate
In Excel, draw up a table with the following data: Scenario number, Capital,
Interest rate, Type of Interest. Then, please create a dynamic process in the table
to calculate the accrued interest each year for 45 years from now on, for each of
the scenario.
Graph the sums accrued and identify what year the sums accrued swap from one
investment being the largest to the other.
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