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Please see the attached. I need help with these questions. Please show step-by-step process on how to calculate and show it in Excel. Thank you
Please see the attached. I need help with these questions. Please show step-by-step process on how to calculate and show it in Excel. Thank you for your help!
You must show your work for all of the problems. 1. You have accumulated $508,894 for your retirement. How much money can you withdraw for the next 25 years in equal annual end-of-the-year cash flows if you invest the money at a rate of 14.39 percent per year, compounded annually? 2. What is the present value of the following future amount? $361,524 to be received 19 years from now, discounted back to the present at 4 percent, 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 10.2 percent, compounded annually. End of year 1 - $4,832 2 - $2,717 3 - $3,955 4 - $1,709 What is the present value of this investment if 10.2 percent per year is the appropriate discount rate? Round your answer to two decimals places. 4. Assume that the inflation rate during the last year was 1.10 percent, US government T-bills had the nominal rates of return of 5.72 percent. What is the real rate of return for a T-bill? Round the answer to two decimal places in percentage form. 5. What is the future value in 13 years of an ordinary annuity cash flow of $1,523 every quarter of a year at the end of the period, at an annual interest rate of 5.85 percent per year, compounded quarterly? Round the answer to two decimal places. 6. Your mother has been working in a small bookstore for many years. Her sales in the first year were $30,940, and her sales in the last year were $57,878. If the sales grew at an average rate of 5.38 percent per year, how many years did your mother sell books in her bookstore? Round to two decimals places. 7. What is the accumulated sum of the following stream of payments? $22,640 every year at the beginning of the year for four years, at 6.85 percent. Compounded annually. 8. You have accumulated some money for your retirement. You are going to withdraw $89,301 every year at the end of the year for the next 24 years. How much money have you accumulated for your retirement? Your account pays you 19.96 percent per year, compounded annually. To answer this question, you have to find the present value of these cash flows. Round the answer to two decimal places. 9. 30 years ago, the average home sale price in your hometown as $89,046. Today the average price of a house is $220,868. What was the average annual rate of change in the price of houses over this time period? (You should calculate the compound growth rate in this problem). 10. What is the accumulated sum of the following stream of payments? $2,586 every year at the end of the year for 8 years at 5.47 percent. Compounded annually. Round the answer to two decimal places. 11. You place $4,893 in a savings account that earns an annual interest rate of 7 percent compounded annually. How much will you have in this account at the end of 35 years? Assume that all interest received at the end of the year is reinvested the next year. Round the answer to two decimal places. 12. What is the present value of a $546.00 perpetuity discounted back to the present at 7.81 percent? The answer should be calculated to decimal places? 13. What is the present value of the following annuity? $3,623 every half year at the end of the period for the next five years, discounted back to the present at 17.62 percent per year, compounded semiannually. Round the answer to two decimal places. 14. Bright Star Bank pays a nominal annual quoted interest rate of 8.74 percent, compounded quarterly on your savings account. Calculate the effective annual rate, or EAR (annual rate, or EAR (annual percentage yield). Round the answer to two decimal places in percentage form. 15. A commercial bank will loan you $54,939 for 3 years to buy a car. The loan must be repaid in equal monthly payments at the end of the month. The annual interest rate on the loan is 16.25 percent of the unpaid balance. What is the amount of the monthly payments? Round the answer to two decimal placesStep by Step Solution
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