Question
1.An investment will generate 10 payments of $100 once in every 3 quarters starting 3 quarters from now. What is the value of the investment
1.An investment will generate 10 payments of $100 once in every 3 quarters starting 3 quarters from now. What is the value of the investment today if the interest rate is 5% compounded quarterly. answer is $819.35 2.Consider a loan requiring you to pay $1,000 per quarter for 12 quarters. The bank's quoted APR is 12% compounded monthly. What is the interest rate that should be used in the present value calculation?" answer 3.03% 3.An investment will generate $100 per month for 15 months starting today. What is the value of the investment today if the interest rate is 5%? answer $1457.21 4.You currently have $50K in your account and expect to make additional $1,000 contributions to your account every year for 12 years followed by 1 additional payment of $2,000 in year 13. How much money will you have in your account at the end of year 13 if the interest rate is 6%? answer $126,529 Please explain how to find the answers using excel |
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