Formula 1 Example 3 B-2 70% 5 B-4 5000PV $100.00PV(82.C2 D2 F2) FV $15 770 FVB3
ID: 1175125 • Letter: F
Question
Formula 1 Example 3 B-2 70% 5 B-4 5000PV $100.00PV(82.C2 D2 F2) FV $15 770 FVB3 C3 D3 E3) PMTPV FV Solve for Answer B-1 B-3 B-5 5.0% 35% 625% 110 25 5000 200 RA 51596 -RATE(C5D5E5F5) 5.37 NPER(B6,D6,E6,F6) 1500 200P PMT $599 79 PMTIB4.CA E4 F4 6 RATE 450 -2000 - 2. (6 point) TASK 2: Find the solutions for the questions below on spreadsheets AND manually directly below each question in the space provided. . Solve manual questions Susie wants to invest in some rental property. How much will she be able to generate if she pays $5,000 annually into an investment account that pays 10% yearly? a. (Hint: Use FV function)Explanation / Answer
A. The time period for which annual payament is done is not given , so I am coniderring it is done 1 Year
FV= PV*(1+r)^n = 5000*(1.1)^1= $5500
B.Pv = Cf1/(1+r)^1+Cf2/(1+r)^2+Cf3/(1+r)^3+Cf4/(1+r)^4+Cf5/(1+r)^5
= 180/1.11+190/(1.11)^2+200/(1.11)^3+210/(1.111)^4+220/(1.11)^5
=$731.50
C. for C Erin current age should be known
In Excel
A Pmt 5000 rate 10 10% N 1 FV(B3,1,0,B2,0) ($5,500.00) B 1 180 2 190 3 200 4 210 5 220 Rate 0.11 NPV(B15,B9:B13) $731.50