Consider this example: you have just started college and you are having a discussion with your parents about how your college will be funded. Your parents explain that they have been investing and a college savings plan for the past 15 years that has earned them an average of 3% per year. They opened the account 15 years ago and since then have been investing $1,500 every year at the end of the year. They ask you to do two things based on the information they have provided:

Drop box answer options from right to left, top to bottom:

The first dropdown box has 4 options. FV= :

FV(B2, B3, B5, [B4], [B6]), PV(B2, B3, B4, [0], [B5]), PV(3.0%, 15, 0, [1500], [1]), PV(4, 0.4, 0, 10000, [0], [1])

The second drop down box answers are: $45,855.52, $92,994.57, $35,121.65, and $27,898.37

Third drop down options:

PMT(3.0%, 15, 0, [100000], [1]), PV(4, 0.4, 0, [10000], [1]), PV(B2, B3, B4, [C7], [B6]), PV(3.0%, 15, 0, [1500], [1])

Fourth drop down box options: $8,723, $81, $5,377, and $1,926

5th dropdown box:

If the pmts were made at the beginning of each year, you would change the value of type in cell B6 to (EITHER 1 OR 2)

6th dropdown box:

which would result in the future of value of $28,735.32, $95,784.41, $36,175.30, and $47,231.18.

7th dropdown box:

FACT, FVSCHEDULE, FIND, FV

8th dropdown box: FV= :

FACT($20,000, 5%), FIND($20,000, B2:B6), FVSCHEDULE($20,000, B2:B6), FV($20,000, B2:B6)

9th dropdown box FV= :

$26,557.75, 40,600.00, $24,143.41, $30,179.26

FIRST TASK: Calculate the amount of money that the college savings account should have accumulated by the end of 15 years. SECOND TASK: Caloulate the annual savings that they should have made if they wanted to save at least $100,000 for your college education. . You can use Excel to compute these values quickcly and accurately, Enter the values into their respective cells to and caloulate the correct answer 1Enter the given values heFIRST TASKSECOND TASK 2 Interest rate per period 3.0% 3Number of years of investment 15 = B3 4 Initial deposit 5 Annual savings deposit 72? 6 Type -B6 Future Value $100,000 Calculate uture value FV -PMrate, nper, pmt, [pvl, [type] 11 Caculate amuai payment -PMT(rate, nper, pv, [tvl, Itype]) If the payments were made at the beginning of each year, you would change the value of type in cell B6 to which would result in the future of value of Your parents also tell you that they had considered investing a lumpsum amount of $20,000 for five years. Their financial advisors had given some predictive interest rates that might have likely applied to the investment during the investment period. The interest rate data is given below. What would have been the future value af the investment amount based on the data your parents had at that point? function in Excel to derive the future value. In this case you would use the Interest rate data 2 Year 1 3.0% 3.5% 4 Year 3 5 Year 4 3.4% 6 Year5 5.1% Caculate future valueFV - FIRST TASK: Calculate the amount of money that the college savings account should have accumulated by the end of 15 years. SECOND TASK: Caloulate the annual savings that they should have made if they wanted to save at least $100,000 for your college education. . You can use Excel to compute these values quickcly and accurately, Enter the values into their respective cells to and caloulate the correct answer 1Enter the given values heFIRST TASKSECOND TASK 2 Interest rate per period 3.0% 3Number of years of investment 15 = B3 4 Initial deposit 5 Annual savings deposit 72? 6 Type -B6 Future Value $100,000 Calculate uture value FV -PMrate, nper, pmt, [pvl, [type] 11 Caculate amuai payment -PMT(rate, nper, pv, [tvl, Itype]) If the payments were made at the beginning of each year, you would change the value of type in cell B6 to which would result in the future of value of Your parents also tell you that they had considered investing a lumpsum amount of $20,000 for five years. Their financial advisors had given some predictive interest rates that might have likely applied to the investment during the investment period. The interest rate data is given below. What would have been the future value af the investment amount based on the data your parents had at that point? function in Excel to derive the future value. In this case you would use the Interest rate data 2 Year 1 3.0% 3.5% 4 Year 3 5 Year 4 3.4% 6 Year5 5.1% Caculate future valueFV