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Part 2: Present Value In this part, calculate the present values. Use the Excel PV function to compute the present values. You are committed to

Part 2: Present Value

In this part, calculate the present values. Use the Excel PV function to compute the present values.

  1. You are committed to owning a $200,000 home. If you believe your mutual fund can achieve an annual return of 10 percent, and you want to buy the home in 15 years, how much must you invest today? (7 Points)

  1. Calculate the present values in the table below using the PV Excel function. (7 Points)

Future value

Years

Interest rate

Present value

$19,500

16

6%

?

$47,390

9

12%

?

$312,200

13

11%

?

$629,380

25

13%

?

Part 2: (See https://support.office.com/en-us/article/pv-function-23879d31-0e02-4321-be01-da16e8168cbd)
C)
Rate Nper Pmt FV PV
D)
Future Value Years Interest Rate Present Value
$19,500 16 6% $7,676.10
$47,390 9 12% $17,089.31
$312,200 13 11% $80,395.95
$629,380 25 13% $29,645.03

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