Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How can I model this on excel? With the cash flow for each year You have $10,000 in savings. Assume you earn 2.5% compounded quarterly

How can I model this on excel? With the cash flow for each year

You have $10,000 in savings. Assume you earn 2.5% compounded quarterly on it for three years, then you earn 5% annually for the next two years, then you withdraw $1,000 to buy a new phone, then you earn 7% per year on the remaining balance for 10 more years.

a. How much savings will you have at the end of the entire time?

b. How much would you have had if you had not purchased the phone?

By hand, I've found for the first part the FV=21,405 and for the second part FV=23,372.

How can I display the FV for each year though?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Finance Markets, Investments, And Financial Management

Authors: Ronald W. Melicher, Edgar A. Norton

17th Edition

1119561175, 978-1119561170

More Books

Students also viewed these Finance questions

Question

1. Maintain my own perspective and my opinions

Answered: 1 week ago