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Please help with the excel calculations. I'm struggling with knowing what formula to use. Assume you are examining a financial instrument with a present value
Please help with the excel calculations. I'm struggling with knowing what formula to use.
Assume you are examining a financial instrument with a present value of $3,800 an investment term of 25 years at an annual interest rate of 5.35% Input Area (enter the values from the question description) Present Value 3,800 Annual Rate 5.35% Number of Years 25 Complete the following table (blue-shaded areas): (a) Periods/Year (m): Based on the frequency listed in column A, enter the number of compounding periods in ONE year (b) FV (formula): Use the FV FORMULA to calculate the FV of this financial instrument using the PV, rate, investment term, and compounding frequency provided. (c) FV (function): Use the FV FUNCTION to calculate the FV of this financial instrument using the PV, rate, investment term, and compounding frequency provided. (d) EAR Formula: Use the EAR FORMULA to calculate the Effective Annual Rate using the rate and compounding frequency provided. (e) EAR Function: Use the EAR FUNCTION to calculate the Effective Annual Rate using the rate and compounding frequency provided. (a) Periods/Year (m) (b) FV (formula) (c) FV (Function) (d) EAR Formula (e) EAR Function Frequency Annual Semiannual Quarterly Monthly Weekly Daily ContinuousStep by Step Solution
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