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I need a solution by Excel, and I need number 3, 4 ,5 more. Thank you. $1 is paid at the end of every year
I need a solution by Excel, and I need number 3, 4 ,5 more. Thank you.
$1 is paid at the end of every year for 50 years. Assume an interest rate of 5% unless otherwis noted. Calculate the present value of the annuity using the following methods (hint: they should equal each other): 1. 1. Sum up the present value of each individual payment 2. Use the annuity present value formula 3. Use the excel PV formula 2. Calculate the accumulated value of the annuity using the following methods: 1. Sum up the accumulated value of each individual payment 2. Use the annuity accumulated value formula 3. Use the excel FV formulav 3. Calculate the value of the annuity at t = 25 using the following methods:+' 1. Sum up the value of each individual payment 2. Use the annuity formulas 3. Use the excel formulasw 4. Accumulate the value from part 1.1 5. Present value the value from part 2.1- 4. Recalculate the follow values at an interest rate of 3% (use any method 1. Present value of the annuity 2. Accumulated value of the annuity+ 3. Value of the annuity at t = 25- 4. Comment on the relationship between the present value of an annuity and interest rates 5. Recalculate the following values assuming payments are now $750 each year. 1. Present value of the annuity 2. Accumulated value of the annuity 3. Value of the annuity at t = 25Step by Step Solution
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