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I need help with the attached questions. Please show me step-by-step process and how to answer in Excel. Thanks for your help!! Solve the following
I need help with the attached questions. Please show me step-by-step process and how to answer in Excel. Thanks for your help!!
Solve the following problems and SHOW YOUR WORK. 1. An investment will pay $1,418 two years from now, $4,635 four years from now, and $2,106 five years from now. If the opportunity rate is 9.34 percent per year, what is the present value of this investment? Round the answer to two decimal places. 2. You are going to save money for your son's education. You have decided to place $1,544 every half year at the end of the period into a savings account earning 8.91 percent per year, compounded semi-annually for the next 10 years. How much money will be in the account at the end of that time period? Round the answer to two decimal places. 3. What is the present value of the following annuity? $4,781 every half year at the beginning of the time period for the next 14 years, discounted back to the present at 8.75 percent per year, compounded semi-annually. Round the answer to two decimal places. 4. For the next 12 years, you decide to place $2,703 in equal year-end deposits into a savings account earning 8.38 percent per year. How much money will be in the account at the end of that time period? Round the answer to two decimal places. 5. You plan to apply for a loan from Bank of America. The nominal annual interest rate for this loan is 19.73 percent, compounded daily (with a 365-day year). What is the effective annual rate, or EAR (annual percentage yield), of this loan? Round the answer to two decimal places in percentage formStep by Step Solution
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