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8. (0-7 pts) You decided to put off buying the car and instead are going to invest $9500 into a zero coupon bond that accrues

8. (0-7 pts) You decided to put off buying the car and instead are going to invest $9500 into a zero coupon bond that accrues 5% interest each year (compounded annually) at the beginning of each year. These bonds make no payments until they mature in two years. Write an Excel function in cell Page 2 of 3 MODULE 6 WORKSHEET ASSIGNMENT (50 points) B8 to calculate the value of this bond after two years. (Hint: Use the FV() function here. No $ are needed since you are not copying down or across here.). =FV( 0, 1) A B D 1 E Car Analysis FL G H annual interest Balloon Can afford #periods Payment Payment or with 2 Car Selling Price rate % down Loan Amount #yrs per year per period FV inheritence 3 Taurus 5 Focus $ 22,300 4.8% 5% $ 21,185 5 12 $ (398) $ - FALSE 4 Thunderbird $ 24,300 6.8% 20% $ 19,440 8.17 12 $ (259) $ FALSE $ 15,799 3.5% 10% $ 14,219 5 12 $ (225) $ (2,204) TRUE 6 Windstar 7 Mustang $ 17,999 12.5% 5% $ 17,099 3 4 $ (1,730) $ TRUE 8 Question 8 $15,045 $10,473.75 6.2% 0% $ 15,045 4.5 12 $ (320) $ TRUE

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