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Excel Activity: Time value of money Download spreadsheet Time value of money-3468f6, x15 a. Find the FV of $1,000 invested to earn 8% after 5
Excel Activity: Time value of money Download spreadsheet Time value of money-3468f6, x15 a. Find the FV of $1,000 invested to earn 8% after 5 years. Round your answer to the nearest cent. $ b. What is the investment's FV at rates of 0%,6%, and 20% after 0,1,2,3,4, and 5 years? Round your answers to the nearest cent. Choose the correct graph of future value as a function of time and rate. Note: blue line is for 0%, orange line is for 6%, and grey line is for 20%. The correct graph is c. Find the PV of $1,000 due in 5 years if the discount rate is 8%. Round your answer to the nearest cent. $ d. A security has a cost of $1,000 and will return $3,000 after 5 years. What rate of return does the security provide? Round your answer to two decimal places. % years PV of ordinary annuity: $ FV of ordinary annuity: $ g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent. PV of annuity due: $ FV of annuity due: $ FV with semiannual compounding: $ PV with semiannual compounding: $ i. Find the annual payments for an ordinary annuity and an annuity due for 10 years with a PV of $1,000 and an interest rate of 6%. Round your answers to the nearest cent. Annual payment for ordinary annuity: $ Annual payment for annuity due: Round vaut ankwatx in the nowtent t t. rye of Inwestment: $ 2. If the ThMis the coly considarsticn, what nomnal rate wil cavas all of the banks to prowids tha zame chative znnu: n+. Ghoese the corrost graph thas. showa how the sayrsnte are civided betweon intersst and principal reparmer. over tins. The rnert graph is Choose the correct graph that shows how the payments are divided between interest and principal repayment over time. The correct graph is
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