let me know if you can read it, i can re-scan it if not. Solve the comprehensive spreadsheet problem 5-41 using excel. Write/compute all your answers on a spreadsheet

Time Value of Money Chapter 5 value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments: Annual inflation is expected to be 5%. He currently has $100,000saved, and he expects to earn 8% annually on his savings. How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? 5-40 REQUIRED ANNUITY PAYMENTS A father is now planning a savings program to put his daughter through college. She is 13, plans to enroll at the university in 5 years, and should graduate 4 years later. Currently, the annual cost (foreverything-food, clothing, tuition, books, transportation, and so forth) is $15,000,but these costs are expected to increase by 5% annually. The college requires total payment at the start of the year. She now has $7,500 in a college savings account that pays 6% annually. Her father will make six equal annual deposits into her account; the first deposit today and the sixth on the day she starts college.How large must each of the sixpayments be? [Hint: Calculate the cost (inflated at 5%)for each year of collegeand find the total present value of those costs, discounted at 6%, as of the day she enters college. Then find the compounded value of her initial $7,500on that same day. The difference between the PV of costs and the amount that would be in the savings account must be made up by the father's deposits, so find the six equal payments that will compound to the required amount.] PREHENSIVE/SPREADSHEET 5-41 PROBLEM TIME VALUE OF MONEY a. b. c. d. e. f. . g. h. i. j. Answer the following questions: Assuming a rate of 10% annually, find the FV of $1,000 after 5 years. What is the investment's FV at rates of 0%,5%, and 20% after 0, 1,2,3,4, and 5 years? Find the PV of $1,000 due in 5 years if the discount rate is 10%. What is the rate of return on a security that costs $1,000 and returns $2,000 after 5 years? Suppose California's population is 36.5 million people and its population is expected to grow by 2% annually. How long will it take for the population to double? Find the PV of an ordinary annuity that pays $1,000 each of the next 5 years if the interest rate is 15%. What is the annuity's FV? How will the PV and FV of the annuity in Part f change if it is an annuity due? What will the FV and the PV be for $1,000 due in 5 years if the interest rate is 10%, semiannual compounding? What will the annual payments be for an ordinary annuity for 10 years with a PV of $1,000 if the interest rate is 8%? What will the payments be if this is an annuity due? Find the PV and the FV of an investment that pays 8% annually and makes the following end-of-year payments: o I k. 1 2 I I I $200 $400 s 100 3 Five banks offer nominal rates of 6% on deposits; but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily. l. What effective annual rate does each bank pay? If you deposit $5,000 in each bank today, how much will you have in each bank at the end of 1 year? 2 years? 2. If all of the banks are insured by the government (the FDIC) and thus are equally risky, will they be equally able to attract funds? If not (and the TVM is the only consideration), what nominal rate will cause all of the banks to provide the same effective annual rate as Bank A? 3. Suppose you don't have the $5,000but need it at the end of 1 year. You plan to make . a series of deposits-annually for A, semiannually for B, quarterly for C, monthly for D, and daily for E-with payments beginning today. How large must the payments be to each bank? 4. Even if the five banks provided the same effective annual rate, would a rational investor be indifferent between the banks? Explain. 1. Suppose you borrow $15,000.The loan's annual interest rate is 8%, and it requires four equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest p~nts, principal repayments, and beginning and ending loan balances. 179 <