To determine Using the FV (Future Value) function in Excel, determine: a. Balance in account after 25 years with monthly deposits of $100 and an APR of 4% b. If APR in part (a) is doubled, is the balance double, more than double or less than double the balance in part (a)? c. If number of years in part (a) is doubled, is the balance double, more than double or less than double the balance in part (a)? Explanation Given: $100 is deposited every month for 25 years with an APR of 4% Calculation: In order to find the amount of balance in accounts refer to the explanation: a. Type ‘= FV’ in excel. Type the rate as 4%, nper is the total number of payment periods and pmt is the payment made in each period. The payment made in each period will be entered as negative number. In this case payment made per year will be $100 x 12 , which is equal to $1200. It will look as under: = FV (4%,25, -1200) After entering pmt, press enter. The answer will be equal to $49975. b. Type ‘= FV’ in excel. Type the rate as 8%, nper is the total number of payment periods and pmt is the payment made in each period. The payment made in each period will be entered as negative number...

Using and Understanding Mathematics: A Quantitative Reasoning Approach (6th Edition)

6th Edition

ISBN: 9780321914620

Author: Jeffrey O. Bennett, William L. Briggs

Publisher: PEARSON

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Chapter 4.C, Problem 77E

To determine

Using the FV (Future Value) function in Excel, determine:

a. Balance in account after 25 years with monthly deposits of $100 and an APR of 4%

b. If APR in part (a) is doubled, is the balance double, more than double or less than double the balance in part (a)?

c. If number of years in part (a) is doubled, is the balance double, more than double or less than double the balance in part (a)?

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Chapter 4.C, Problem 76E

Chapter 4.C, Problem 78E

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Using and Understanding Mathematics: A Quantitative Reasoning Approach (6th Edition)

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