ADE ste BI Shes Omice Update To keep up-to-date with security updates, fees, and improvements, choose Check for Updates Che Step Instructions Points Possible 1 0 2 6 3 6 Start Excel. Download and open the workbook named: Chapter_9-4_Mutual_Fund_Start In cell C8, enter the balance at the beginning of year 2. Fill cell C8 down the column to cell C36. Format cells C8C36 as Currency with 2 decimal places. Note: The values in range C8:C36 will automatically change after completing the next steps. In cell D8, calculate the amount of deposit for year 2. Fill cell D8 down the column to cell D36. Format cells 08:D36 as Currency with 2 decimal places. In cell E7, calculate the new balance at the end of year 1. Fill cell E7 down the column to cell E36. Format cells E7:E36 as Currency with 2 decimal places. In cell G13, determine the year in which the ending balance goes above $1 million for the first time. In cell G17, calculate $1,000,000 in today's dollars given inflation of 3%. Format cell G17 as Currency with 2 decimal places. In cell B4, change the rate of return to 15%. Copy only the value from coll E36 to cell G23. Then change the value in cell B4 back to 10% 6 4 5 2. 4 6 2 7 OF English United States nser Draw Design Layout References Mailings Review View Zotero Arial + A A Shar Aaw A AaBCD Aalbos X x St Pan Update To keep up to date with security updates, faxes, and improvements, choose Check for Updates TIT Cents, uetermine me year in wre enuing balance yous above mor Tornest time. 6 7 2 8 In cell G17, calculate $1,000,000 in today's dollars given inflation of 3%. Format cell G17 as Currency with 2 decimal places. In cell B4, change the rate of return to 15%. Copy only the value from cell E36 to cell G23. Then change the value in cell B4 back to 10%. Note: To paste only the value in a cell, click the right mouse button and select Values (V) from the Paste Options menu. In cell D7, change the initial deposit to $12,000. Copy only the value from cell E36 to cell G25. Then change the value in cell D7 back to $6,000. Note: Be sure that the rate of return is equal to 10%. To paste only the value in a cell, click the right mouse button and select Values (V) from the Paste Options menu. In cell G27, determine which has a bigger impact on ending balance after 30 years: increasing the rate of return by 50% to 15% or doubling the initial deposit to $12,000. Save your file and submit for grading. 2 9 2 10 0 Total Points 30 O FOCUS words English (United States MBO D Mutual Fund 4 Rate of Return: 10% a.) End Balance You are going to put money away every year the first year and then increase your deposit E start with $0 in the account and make the des a.) Deposit $6,000.00 Year New Balance $0.00 1 2 3 9 10 4 5 12 1 b.) How long w balance goes al c.) c.) Given your today's dollars today would as currency wi 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 d.) What has a of return by 5 change the rat change the in $6,000 + Style's Format Filter Select F G H L M N 0 P Q You are going to put money away every year into a mutual fund which returns 10% a year. You will deposit $6,000 in the first year and then increase your deposit by 3% every year (since your salary will be increasing also). Assume you start with $0 in the account and make the deposit at the beginning of the year so it always grows by 10% each year. a.) b.) How long will it take you to get to $1 million? Give the year in which the ending balance goes above $1 million for the first time. c.) c.) Given your answer in part (b), determine what the value of that $1 million is in today's dollars by assuming a 3% inflation rate. In other words, what amount of money today would grow at 3% for the number of years in part (b) to equal 1 million? Format as currency with two decimal places. d.) DOO d.) What has a bigger impact on your ending balance after 30 years: increasing the rate of return by 50% to 15% or doubling the initial deposit to $12,000? To answer this, change the rate to 15% and look at the end result. Then change back to 10% and change the initial $6,000 to $12,000 and look at the end result. Then reset back to $6,000