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PLEASE HELP TO SOLVE ORBLEM IN EXCEL> THANK YOU PROBLEM III Consider an annuity that pays a fixed amount of C every time period for
PLEASE HELP TO SOLVE ORBLEM IN EXCEL> THANK YOU
PROBLEM III Consider an annuity that pays a fixed amount of C every time period for n periods. If the discount rate is r, the PV of this annuity is: PV=C/(1+r)+C/(1+r)2+C/(1+r)3+C/(1+r)n (a) Write a function to compute the PV of an annuity. You must use recursion in this function. Name the function "AnnuityPV" and use it to compute the PV of an annuity that pays $1,000 at the end of each year for the next 7 years. The discount rate is 8% per year. (b) Now rewrite the function but you must use Do While in the function. Name this function "AnnuityPV2" and use it to compute the PV of an annuity that pays $1,000 at the end of each year for the next 7 years. The discount rate is 8% per year. PROBLEM IV Write a macro that uses the AnnuityPV function you have written in Problem III. - Name your macro as AnnuityPVCalc. - This macro should ask the user for the inputs: C,r, and n. These inputs should be asked for as follows: Please input the cash flow: Please input the interest rate: Please input the number of periods: - The title of each of the box that asks for the above input should be: Input for Annuity PV Calculator For each of the above, the following default values should be supplied. (User can overwrite these default values to provide the new values.) Cash flow of 1,000 , interest rate of 5% or 0.05 , and number of periods as 10 . The result should be displayed in a message box that states the following. The present value of the annuity is: The title of the box that provides the above output should be: Annuity PV Calculator Output PROBLEM III Consider an annuity that pays a fixed amount of C every time period for n periods. If the discount rate is r, the PV of this annuity is: PV=C/(1+r)+C/(1+r)2+C/(1+r)3+C/(1+r)n (a) Write a function to compute the PV of an annuity. You must use recursion in this function. Name the function "AnnuityPV" and use it to compute the PV of an annuity that pays $1,000 at the end of each year for the next 7 years. The discount rate is 8% per year. (b) Now rewrite the function but you must use Do While in the function. Name this function "AnnuityPV2" and use it to compute the PV of an annuity that pays $1,000 at the end of each year for the next 7 years. The discount rate is 8% per year. PROBLEM IV Write a macro that uses the AnnuityPV function you have written in Problem III. - Name your macro as AnnuityPVCalc. - This macro should ask the user for the inputs: C,r, and n. These inputs should be asked for as follows: Please input the cash flow: Please input the interest rate: Please input the number of periods: - The title of each of the box that asks for the above input should be: Input for Annuity PV Calculator For each of the above, the following default values should be supplied. (User can overwrite these default values to provide the new values.) Cash flow of 1,000 , interest rate of 5% or 0.05 , and number of periods as 10 . The result should be displayed in a message box that states the following. The present value of the annuity is: The title of the box that provides the above output should be: Annuity PV Calculator OutputStep by Step Solution
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