How to solves in Excel?
1) Billy Bob deposits S2000.00 in an account that pays 4.25% compounded annually. How much will BB have in his account in 10 years? 2,000 4.25% 10 a) Solve using algebra: Using a' mark, copy the formula used in a (cell F11) here: b) Solve using Excel functions; Using a' mark, copy the formula used in cell F15 here: 2) Fifteen years ago, Bob purchased an investment for $1,500. If the investment averaged 6% per year return. How much is the investment worth today? Identify variables given; a) Solve problem by referencing the cell addresses of variables you have identified; Answer 3) A S1000 deposit in an account carns interest at an annual nominal rate of 8.00%. Interest is compounded monthly in the account. How much money will be in the account at the end of the 10th year? Identify variables given; a) Solve the problem using the cells above. Answer b) What is the EAR of the rate above compounded monthly? 4) A zero-coupon bond matures in 10 years and will be worth $1000.00 to the holder. If the bond was purchased 10 years ago, and yielded a return of 5% per year, how much did the holder pay for the bond? (Assume annual compounding, and answer to the nearest cent-S0.01). B D E F G H - Name: 2 3 4 ID: 5 6 Directions: Complete the 4 tasks below. 7 8 9 1) Billy Bob deposits $2000.00 in an account that pays 4.25% compounded annually. How much will BB have in his account in 10 years? $ 2,000.00 4.25% 10 a) Solve using algebra: Using a'mark, copy the formula used in a cell F11) here: b) Solve using Excel functions; Using a'mark, copy the formula used in cell F15 here: 2) Fifteen years ago, Bob purchased an investment for $1,500. If the investment averaged 6% per year return. How much is the investment worth today? Identify variables given; a) Solve problem by referencing the cell addresses of variables you have identified; Answer 10 11 12 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 38 39 40 41 42 43 44 3) A$1000 deposit in an account earns interest at an annual nominal rate of 8.00%. Interest is compounded monthly in the account. How much money will be in the account at the end of the 10th year? Identify variables given; a) Solve the problem using the cells above. Answer b) What is the EAR of the rate above compounded monthly? 4) A zero-coupon bond matures in 10 years and will be worth $1000.00 to the holder. If the bond was purchased 10 years ago, and yielded a return of 5% per year, how much did the holder pay for the bond? (Assume annual compounding, and answer to the nearest cent-$0.01)
