Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

NEED THIS DONE ASAP!!!!!!!!!!!!!!!!!!!!!! SOMEONE HELP In Chapter 2 we learn about the time value of money, or in more specific terms how to relate

NEED THIS DONE ASAP!!!!!!!!!!!!!!!!!!!!!! SOMEONE HELP

In Chapter 2 we learn about the time value of money, or in more specific terms how to relate values going back and for in time, relating present to the future, or present to the past, or seen financial flows from the past to the future.

In your text you learned how to evaluate value from the present to the future, and on page 22 you see that $100 now, with a rate of 6% in ten years is $179. Also on page 23 you find out the future value of a deposit of $100 at the beginning of each year, and on page 26 on the same value deposit at the end of the year. The text does not put the two of them together, although both EXCEL FV & PV are functions having five arguments. I would like to integrate everything into one sheet and make the calculations for ten years, first for deposits at the beginning of a year, and then for deposits at the end of the year. I would like you to have the option of not having anything in your balance at the beginning of a year, or having a balance at the beginning of the year. I also like you to be able to increase or decrease your deposits during the ten year period, and that deposit change to be either in a given dollar value that you would place in D3, or with a given percent in D5. The results of a dollar change can be seen in columns D to G, while the results of a percent change in columns K to N. Your initial payment can be large and decrease in time, or small and increase in time. Your control area is D1:D6. Everything else will be dependent on what you have in this range.

image text in transcribed

You should start with the numerical information you have in your text. You need to put the correct formulas in the cells I indicate with a gray color. After that you drag this range in order to have your complete table. I would like to see your earned interest from the initial deposit separated than the additional annual payment, and then the total interest value.

image text in transcribed

Try to develop an integrated sheet like the example I presented you. Work with all possible cases, observe what is happening, keep your notes, and then provide me explanation of WHAT is happening and WHY it is happening. As you realize, I am not asking specific questions. I would like you to explore, think and explain in writing.

image text in transcribed

Similarly, on pages 33 & 37, we learn how to evaluate the present value of future deposits. I would like you to calculate such future deposits of ten years, look for the alternative of having these deposits at the beginning and the end of a year, have the deposits increasing or decreasing with a given dollar amount or a specific percentage, and having as an option at the end of the ten year period to expect an additional sizable amount as well.

I would like you to add the =FORMULATEXT( ) function in order to view the formulas you use, use the EXCEL formulas you learned from your text, and validate your numerical findings with the mathematical formulas you learn.

You have the test days in advance and have plenty of time to work. You need to improve EXCEL skills, financial understanding and try to explain clear using your EXCEL calculations.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions