Question
In the sheet Q1 you will find a partially-filled worksheet. The traveler invests 1,000 dollars and leaves it in the bank account that pays 10%
In the sheet Q1 you will find a partially-filled worksheet. The traveler invests 1,000 dollars and leaves it in the bank account that pays 10% per year. Suppose now that the traveler intends to retire in 15 years and travel all over the world after his retirement. And suppose he plans to make 15 annual deposits of $1,000, with the first deposit made in T0 (today) and each succeeding deposit made at the end of years 1, 2,,14
1.a. (7 points for the final answer only, no partial credit) First, use the FV function to calculate the future value of all these deposits at the end of year 15 which tells us how much the traveler will have accumulated in the account. Do this in cell B5 and we want a positive number in this cell.
1.b. (10 points) Second, create a two-way-table, and show how does the previous answer change when the amount deposited (in 1a. it is 1000 dollars) varies to [200, 400, 600, 800, 1000, 1200, 1400, 1600, 1800, 2000] dollars, and when the interest rate (in 1a. it is 10%) varies to [0%, 1%, 2%, 3%, 4%, 5%, 6%, 7%, 8%, 9%, 10%, 11%, 12%, 13%, 14%, 15%
\begin{tabular}{|r|r|r|r|r|r|r|r|} \hline \\ Annual investment \\ Interest rate \end{tabular}Step by Step Solution
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