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Instructions: You are talking with a financial planner because you want to start investing some of your saved money. She offers you a few
Instructions: You are talking with a financial planner because you want to start investing some of your saved money. She offers you a few options for investing. Use Excel formulas, so I can determine how you calculated each answer. Background: The financial planner states that, on average, you should receive an annual return of about 8% on your investments Option 1: Option 2: Option 3: Invest $6,000 that you have saved right now and let it grow over 5 years. Invest $1,200 per year over the next 5 years. Invest $2,000 now and then pay $800 at the end of each year for the next 5 years. Interest rate Number of periods Calculate the future value of each option, so that you can choose the one that will result in the most money after 5 years: Option 1: Option 2: Option 3:
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