Instructions: 1. Evaluate each exercise separately. Every situation is independe
ID: 2715203 • Letter: I
Question
Instructions:
1. Evaluate each exercise separately. Every situation is independent from one another.
2. You must show all calculations that led you to the result. If you do not include the computations not
You will receive full credit even if the result is correct.
*** NOTE *** IT IS VERY IMPORTANT TO COMPLETE THE ENTIRE EXERCISE. INCLUDE ALL THE CALCULATIONS, PLEASE. THANK
*** NOTE *** IT IS VERY IMPORTANT TO COMPLETE THE ENTIRE EXERCISE. INCLUDE ALL THE CALCULATIONS, PLEASE. THANK.
Problem 2: Calculate the future value of the following amounts deposited have today if compound interest Annual as shown below: Cash Flow Periods of deposit (in years) Situation Interest rate 20% 7.65% 5.75% 700,000 2,350 750 3,000 200 250,000 4 40 20 15 5% 12%Explanation / Answer
2) Use the "fv" command in excel. FV(rate,nper,pmt,pv,type). The rate,nper and pv change for each case . The pmt can be left blank and type will be 1. The "pv" is amount pauid now yand it has to be given as negative since it is cash outflow.
A:FV(20%,3,,-700000,1)=$1,209,600
B:FV(7.65%,5,,-2350,1)=$3397.33
C:FV(5.75%,4,,-750,1)=$937.96
D:FV(9.75%,40,,-3000,1)=$123,965.95
E:FV(5%,20,,-200,1)=$530.66
F:FV(12%,15,,-250000,1)=$1,368,391.44
b
Here we use PV formulae in excel . PV(rate,nper,pmt,fv,type).The rate,nper and fv will change for each case . The pmt can be left blank and type will be 0. The "fv" is amount received
A:PV(6%,5,,-7500,0)=$5604.44
B:PV(7.5%,4,,-5000,0)=$3,744
C:PV(7.6%,6,,-25000,0)=$16,108.92
D:PV(6.5%,2,,-750,0)=$661.24
E:PV(9.25%,5,,-35000,0)=$22,488.52