Question
Please check my answers and assist with showing how to work the formulas in excel .. example PV and rate. Provide feedback if answers are
Please check my answers and assist with showing how to work the formulas in excel .. example PV and rate. Provide feedback if answers are incorrect to assist with understanding .
A) Your company will need to replace a machine in 6 years because the current one will eventually become outmoded and, compared to your competition, your production will be lagging as a result. FIRST, what is the value of $85,000 if it is invested at 4.5% compounded annually for six years to have a down payment for a new machine? Answer ___110,692.11______________
B) Next, if you can invest the money to compound quarterly, what will be the end result? (Remember you must adjust the nper and the rate, multiply the # of years by 4 and divide the annual rate by 4.) Final Answer __111,179.25_____________
C) Finally, if you can compound your money monthly, what will be the end result? Make the adjustments to nper and rate! Final Answer _111,290.76_______________
How much money would you have to invest now at 6% compounded annually to have $35,000 available for the purchase of a new company car 5 years from now? Final Answer __26,154.04_______________
A small savings account intended for the purpose of replacing office computers was opened with an investment of $12,000, 6 years ago. The ending balance in the account is $13,900. If interest was compounded annually, what rate was earned on the account? SHOW 4 decimal places for accuracy. Final Answer ________2.48%_________
You are a wise business owner and place $17,500 in a special contingency fund for future investment in plant and equipment. In 8 years the fund will be worth $22,580. What is the rate of return on the fund if we assume annual compounding? SHOW 4 decimal places for accuracy.
Final Answer ______3.191%___________
Referring back to 4 above, as opposed to putting in 1 amount now, you choose to put aside $2500 in the fund every year (pmt) for the next 8 years into an account that earns 3.25% each year. How much will the money be worth in 8 years? Final Answer ____17,365.62_____________
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