Part 1: Future Value In this part, you need to find the value of an investment in three different ways. Consider the following question: Find the future value (FV) of $1,000 invested to earn 3% annually 5 years from now. A) Calculate the FV using a time line (8 Points) B) Calculate the FV using the FV formula discussed in the Powerpoints (8 Points) C) Calculate the FV using the Excel function (8 Points) Part 2: Find I and N In this part, you need to find the interest rate and length of time. Consider the following question: A security has a cost of $2,000 and will return $3,000 after 8 years. What rate of return does the security provide? D) Calculate the rate of return (I) using the Excel function (8 Points) The population of Texas is 28 million people. Suppose the population is expected to grow by 2% per year. How long would it take for the population to double? E) Calculate the number of periods using the Excel function (8 Points) Part 3: Relation between FV and N In this part, you need to examine the relation between the future value and the time. F) For a present value of $1,500, table that shows the FV at 0%, 10%, and 20% for 0, 1, 2, 3, 4, and 5 years (8 Points) G) In a single plot, graph the table above with years on the horizontal axis and FV on the vertical axis for each interest rate and be sure to label the y-axis, x-axis, chart title, and legend (8 Points)

FINC 3304 - Project 1 - Time Value of Money Last Name First Name Part 1: A) Time line 0 1 3 5 PV C) Excel function (see https://support.office.com/en-US/article/FV-function-2EEF9F44-A084-4C61-BDD8-4FE4BB1B71B3) Nper t 4 B) Formula Rate r 2 Pmt FV PV FV Part 2: D) Interest rate (See https://support.office.com/en-US/article/RATE-function-9F665657-4A7E-4BB7-A030-83FC59E748CE) Nper E) Period Pmt PV FV Interest rate (see https://support.office.com/en-us/article/NPER-function-8d353a63-394b-4e74-9541-bac395031dab?ui Rate Pmt PV FV Interest rate PV t FV Period Part 3: F) Table Hint: use the formula FV = PV(1+ Interest rate PV t FV Hint: use the formula FV = PV(1+ Interest rate PV t FV Hint: use the formula FV = PV(1+ G) Graph FV Hint: Apply the FV formula at each time step, i.e. FV=PV(1+I) Hint: use the formula FV = PV(1+r)^t 4C61-BDD8-4FE4BB1B71B3) Hint: The function is "=FV(Rate,Nper,Pmt,-PV)" 7E-4BB7-A030-83FC59E748CE) nterest rate Hint: The function is "=RATE(Nper, Pmt, -PV, FV)" 4b-4e74-9541-bac395031dab?ui=en-US&rs=en-US&ad=US) Hint: The function is "=NPER(Rate, Pmt, -PV, FV)" Hint: use the formula FV = PV(1+r)^t Hint: use the formula FV = PV(1+r)^t Hint: use the formula FV = PV(1+r)^t FINC 3304 - Business Finance Project 1 Time Value of Money The goal of this project is to explore the topic of time value of money. The project requires you to work in Excel with the provided spreadsheet. Be sure to fill in the yellow boxes in the Excel file for full credit. In addition, type up a report in Word with an introduction (description of the project), findings (answer assignment questions, plots, etc.), and conclusion (conclusions, summary). Your grade will depend on both quantity and quality. Make sure to follow all directions or points will be deducted. Upon completion, please submit both your Word report and Excel file to blackboard. Each question (A, B, C, D, E, F, and G) is worth 8 points (total of 56 points), the report 10 points, and the Excel file 9 points. Time Value of Money Part 1: Future Value In this part, you need to find the value of an investment in three different ways. Consider the following question: Find the future value (FV) of $1,000 invested to earn 3% annually 5 years from now. A) Calculate the FV using a time line (8 Points) B) Calculate the FV using the FV formula discussed in the Powerpoints (8 Points) C) Calculate the FV using the Excel function (8 Points) Part 2: Find I and N In this part, you need to find the interest rate and length of time. Consider the following question: A security has a cost of $2,000 and will return $3,000 after 8 years. What rate of return does the security provide? D) Calculate the rate of return (I) using the Excel function (8 Points) The population of Texas is 28 million people. Suppose the population is expected to grow by 2% per year. How long would it take for the population to double? E) Calculate the number of periods using the Excel function (8 Points) Part 3: Relation between FV and N In this part, you need to examine the relation between the future value and the time. F) For a present value of $1,500, create a table that shows the FV at 0%, 10%, and 20% for 0, 1, 2, 3, 4, and 5 years (8 Points) G) In a single plot, graph the table above with years on the horizontal axis and FV on the vertical axis for each interest rate and be sure to label the y-axis, x-axis, chart title, and legend (8 Points)