Question
Please explain using excel 1. You placed $8,584 in a savings account today that earns an annual interest rate of 11.96 percent, compounded semiannually. How
Please explain using excel
1. You placed $8,584 in a savings account today that earns an annual interest rate of 11.96 percent, compounded semiannually. How much will you have in this account at the end of 6 years? Assume that all interest received at the end of the period is reinvested the next period. Round the answer to two decimal places.
2. What is the present value of the following annuity? $3,859 every year at the end of the year for the next 3 years, discounted back to the present at 16.85 percent per year, compounded annually? Round the answer to two decimal places.
3. You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 4.6 percent, compounded annually.
End of year 1. $901 2. $3,459 3. $3,132 4. $1,904
What is the present value of this investment if 4.6 percent per year is the appropriate discount rate? Round the answer to two decimal places.
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