My teacher gave this for homeowrk and im really confused what to do he didnt really explain it that well.
Using a Spreadsheet to Analyze Annuities Name 1. Creating an investment template Open a new speradeel document Copy the headings vales ad formulas shown below. 1 Aountant Regres Amor Compounding a year 5 Number of 6 werd 7 Number of peo 9 Period 101 11 A101 orcs Depok Ending balance -010-10-010 ROCCO -011011011 - Format cells C2 und B10 to Ell currency Format cells and a percents to 2 decimal places. Refer to the formula is the probeet is part Explain the formules indled Why is the interest in the first pered - The formode=5052ppens in oels DIO and Di The se indicates that are should not change when we copy the free to the colle in on Laplain why this makes sense . Explain the formulas fine the ending and starting balance o. Select alls All holl Fill Down to opy the form in 11 through now is Your pashed like this D $500.00 7.00% 2 3 2.50% 8 1 Amount of an Annuity 2 Regular payments 3 Annual interest rate 4 Compounding periods per year 5 Number of years 6 Interest rate per period 7 Number of periods 8 9 Period Starting balance 10 1 $0.00 11 2 $500.00 12 3 S1017.50 12 4 $1553.11 14 5 $2107.47 15 6 S2681.23 Interest $0.00 $17.50 $35.61 $54.36 573.78 $93.84 Deposit $500.00 $500.00 S500.00 S500.00 $300.00 $500.00 Ending balance $500.00 5101750 $1553.11 $210747 $2681.23 $3275.07 The amount of the annuity is $3275.07. 2. Changing the payment a) Suppose the regular payment is doubled Be as specific as you from $500 to $1000. Predict how the can in your prediction amount will change. Explain your reasoning. b) Check your prediction. Were you correct? Explain. c) Repeat parts a and b when the regular payment is halved from $500 to $250. Change the regular deposit back to $500.00. 3. Changing the interest rate a) Suppose the annual interest rate is doubled from 7% to 14%. Predict how the amount will change. Explain your reasoning. b) Check your prediction. Were you correct? Explain. c) Repeat parts a and b when the annual interest rate is halved from 7% to 3.5%. Change the interest rate back to 7%. 4. Changing the term a) Suppose the term is doubled from 3 years to 6 years. Predict how the amount will change. Explain your reasoning. b) Check your prediction. Were you correct? Explain. c) Repeat parts a and b when the term is halved from 3 years to 1.5 years. Change the term back to 3 years. 5. Changing the payment frequency and the compounding a) Suppose the payment frequency and compounding are doubled from semi-annually to quarterly. Predict how the amount will change. Explain your reasoning. b) Check your prediction. Were you correct? Explain. c) Repeat parts a and b when the payment frequency and the compounding is halved from semi-annually to annually. d) Compare the amount under each payment and compounding frequency. Which produces the greatest amount? Why does this result make sense? Change the number of compounding periods back to 2. 6. Comparing the effect of each change Refer to your answers in questions 2 to 5. Which of the following changes produced the greatest amount? Doubling the payments Doubling the interest rate Doubling the term Doubling the payment frequency and compounding Using a Spreadsheet to Analyze Annuities Name: 1. Creating an investment template a) Open a new spreadsheet document. Copy the headings, values, and formulas shown below. 1 Amount of an 2 Regulares Annuaires 4 Compounding pena pery Number of your 6 Interest rate per period 2 Number of periode 9 Perle 10 1 11 -A101 500 DOT 2 3 CACA -CACS Starting balance Interest Depos Ending balance 0 -810-10-010 -E10 -ROUNDS011.) -500 -311+011011 Format cells C2 and B10 to Ell as currency Format cells C and Co as percents to 2 decimal places. b) Refer to the formulas in the spreadsheet in part . Explain the formulas in cells C and C7 Why is the interest in the first period The formula SCS2 appears in cells Dio and Dil The Sign indicates that will address C2 should not change when we copy the formula to other cells in column Explain why this makes me Explain the formulas for the ending and starting halances d. Sciect cells A11 to En Fill Down to copy the formules in row 11 through row 15. Your spreadsheet should look like this + C D SS00.00 7.00% 2 3 3.50% 6 1 Amount of an Annuity 2 Regular payments 3 Annual interest rate 4 Compounding periods per year 5 Number of years 6 Interest rate per period 7 Number of periods 8 9 Period Starting balance 10 1 S0.00 11 2 $500.00 12 3 $1017.50 13 4 S1553.11 14 5 $2107.47 15 $2681.23 Interest $0.00 $17.50 $35.61 $54.36 $73.76 $93.84 Deposit $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 Ending balance $500.00 $1017.50 S1553.11 S2107 47 $268123 S3275.07 The amount of the annuity is $3275.07. Using a Spreadsheet to Analyze Annuities Name 1. Creating an investment template Open a new speradeel document Copy the headings vales ad formulas shown below. 1 Aountant Regres Amor Compounding a year 5 Number of 6 werd 7 Number of peo 9 Period 101 11 A101 orcs Depok Ending balance -010-10-010 ROCCO -011011011 - Format cells C2 und B10 to Ell currency Format cells and a percents to 2 decimal places. Refer to the formula is the probeet is part Explain the formules indled Why is the interest in the first pered - The formode=5052ppens in oels DIO and Di The se indicates that are should not change when we copy the free to the colle in on Laplain why this makes sense . Explain the formulas fine the ending and starting balance o. Select alls All holl Fill Down to opy the form in 11 through now is Your pashed like this D $500.00 7.00% 2 3 2.50% 8 1 Amount of an Annuity 2 Regular payments 3 Annual interest rate 4 Compounding periods per year 5 Number of years 6 Interest rate per period 7 Number of periods 8 9 Period Starting balance 10 1 $0.00 11 2 $500.00 12 3 S1017.50 12 4 $1553.11 14 5 $2107.47 15 6 S2681.23 Interest $0.00 $17.50 $35.61 $54.36 573.78 $93.84 Deposit $500.00 $500.00 S500.00 S500.00 $300.00 $500.00 Ending balance $500.00 5101750 $1553.11 $210747 $2681.23 $3275.07 The amount of the annuity is $3275.07. 2. Changing the payment a) Suppose the regular payment is doubled Be as specific as you from $500 to $1000. Predict how the can in your prediction amount will change. Explain your reasoning. b) Check your prediction. Were you correct? Explain. c) Repeat parts a and b when the regular payment is halved from $500 to $250. Change the regular deposit back to $500.00. 3. Changing the interest rate a) Suppose the annual interest rate is doubled from 7% to 14%. Predict how the amount will change. Explain your reasoning. b) Check your prediction. Were you correct? Explain. c) Repeat parts a and b when the annual interest rate is halved from 7% to 3.5%. Change the interest rate back to 7%. 4. Changing the term a) Suppose the term is doubled from 3 years to 6 years. Predict how the amount will change. Explain your reasoning. b) Check your prediction. Were you correct? Explain. c) Repeat parts a and b when the term is halved from 3 years to 1.5 years. Change the term back to 3 years. 5. Changing the payment frequency and the compounding a) Suppose the payment frequency and compounding are doubled from semi-annually to quarterly. Predict how the amount will change. Explain your reasoning. b) Check your prediction. Were you correct? Explain. c) Repeat parts a and b when the payment frequency and the compounding is halved from semi-annually to annually. d) Compare the amount under each payment and compounding frequency. Which produces the greatest amount? Why does this result make sense? Change the number of compounding periods back to 2. 6. Comparing the effect of each change Refer to your answers in questions 2 to 5. Which of the following changes produced the greatest amount? Doubling the payments Doubling the interest rate Doubling the term Doubling the payment frequency and compounding Using a Spreadsheet to Analyze Annuities Name: 1. Creating an investment template a) Open a new spreadsheet document. Copy the headings, values, and formulas shown below. 1 Amount of an 2 Regulares Annuaires 4 Compounding pena pery Number of your 6 Interest rate per period 2 Number of periode 9 Perle 10 1 11 -A101 500 DOT 2 3 CACA -CACS Starting balance Interest Depos Ending balance 0 -810-10-010 -E10 -ROUNDS011.) -500 -311+011011 Format cells C2 and B10 to Ell as currency Format cells C and Co as percents to 2 decimal places. b) Refer to the formulas in the spreadsheet in part . Explain the formulas in cells C and C7 Why is the interest in the first period The formula SCS2 appears in cells Dio and Dil The Sign indicates that will address C2 should not change when we copy the formula to other cells in column Explain why this makes me Explain the formulas for the ending and starting halances d. Sciect cells A11 to En Fill Down to copy the formules in row 11 through row 15. Your spreadsheet should look like this + C D SS00.00 7.00% 2 3 3.50% 6 1 Amount of an Annuity 2 Regular payments 3 Annual interest rate 4 Compounding periods per year 5 Number of years 6 Interest rate per period 7 Number of periods 8 9 Period Starting balance 10 1 S0.00 11 2 $500.00 12 3 $1017.50 13 4 S1553.11 14 5 $2107.47 15 $2681.23 Interest $0.00 $17.50 $35.61 $54.36 $73.76 $93.84 Deposit $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 Ending balance $500.00 $1017.50 S1553.11 S2107 47 $268123 S3275.07 The amount of the annuity is $3275.07
