It is the end of $2024.$ You plan to compIntro

It is the end of $2024.$ You plan to complete a Ph$.$D$.$ in $5$ years. Your favorite uncle has promised to help you with

your school expenses by giving you the following amounts for Christmas:

Your uncle is fairly wealthy and very reliable. You currently have $$10,000$ in a savings account paying an annual

interest rate of $12\%.$

Part $1$

Attempt $3/10$ for $10$ pts$.$

Create an Excel spreadsheet showing the years and cash flows as in the table above, then add a row that shows

the number of years from now and another row that shows the present value of each cash flow. What is the sum

of present values?

Hint: do not hardcode the discount rate into your formulas. Instead, keep it in a separate cell and refer back to it$.$

You'll be asked to change in discount rate in parts $4$ to $7.$

Part $2$

You also want to know how much each gift will be worth in $2029$ if you save it$.$ Add another row to your

spreadsheet and calculate the value of each cash flow in $2029.$ What is the sum of all future values?

Part $3$

What is the present value of the sum of future values calculated in the previous part?

Part $4$

Now assume that the interest rate is $10\%.$ What is the present value of all the gifts?lete a Ph$.$D$.$ in $5$ years. Your favorite uncle has promised to help you with your school expenses by giving you the following amounts for Christmas:

Year $20252026202720282029$

Cash flow $1,0001,6001,8002,0002,200$

Your uncle is fairly wealthy and very reliable. You currently have $$10,000$ in a savings account paying an annual interest rate of $12\%.$

$1.$ Create an Excel spreadsheet showing the years and cash flows as in the table above, then add a row that shows the number of years from now and another row that shows the present value of each cash flow. What is the sum of present values? Hint: do not hardcode the discount rate into your formulas. Instead, keep it in a separate cell and refer back to it$.$ You'll be asked to change in discount rate in parts $4$ to $7.$

$2.$ You also want to know how much each gift will be worth in $2029$if you save it$.$ Add another row to your spreadsheet and calculate the value of each cash flow in $2029.$ What is the sum of all future values?

$3.$ What is the present value of the sum of future values calculated in the previous part?

$4.$ Now assume that the interest rate is $10\%.$ What is the present value of all the gifts?

$5.$ Still assume that the interest rate is $10\%.$ What is the future value of all the gifts?

$6.$ Now assume that the interest rate is $16\%.$ What is the present value of all the gifts?

$7.$ Still assume that the interest rate is $16\%.$ What is the future value of all the gifts?Part $7$

Attempt $\frac{1}{10}$ for $10$ pts$.$

Still assume that the interest rate is $16\%.$ What is the future value of all the gifts?

Part $6$

Now assume that the interest rate is $16\%.$ What is the present value of all the gifts?

Still assume that the interest rate is $10\%.$ What is the future value of all the gifts?

Now assume that the interest rate is $10\%.$ What is the present value of all the gifts?

Part $4$

Part $5$

Still assume that the interest rate is $10\%.$ What is the future value of all the gifts?

Now assume that the interest rate is $16\%.$ What is the present value of all the gifts?