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if you can please solve them by excel if applicable 1. You need $16,000 for your tuition expenses in 5 years. a) How much should
if you can please solve them by excel if applicable
1. You need $16,000 for your tuition expenses in 5 years. a) How much should you deposit today in a saving account that pays 8% per year? b) What if the compounding is every six months, every quarter? c) If you deposit $6000 at 10% per year with quarterly compounding can you reach your tuition target? 2. Find the PV of an ordinary annuity that pays $4,600 at the end of each of the next 6 years if the interest rate is 12%. Then find the FV of that same annuity. Use formula, TVM table and excel. How would the PV and FV of the above annuity change if it were an annuity due rather than an ordinary annuity? Same methods as above. 3. You are planning on taking a vacation in four years. You intend to put an equal amount at the beginning of each year for four years into an account paying 7% interest. You expect it to cost $12,000 for your vacation. How much must you deposit each period to fund your planned vacation? Hint. This is an annuityStep by Step Solution
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