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Please solve this question with Microsoft Excel. The calculation of present value (PV) or future value (FV) involves specifying the discount rater and the compounding
Please solve this question with Microsoft Excel.
The calculation of present value (PV) or future value (FV) involves specifying the discount rater and the compounding period n. Create an Excel spreadsheet by specifying the following: The variable "Annual Discount Rate r" in Cell A1. The "Compounding Period n in years)" in Cell A2. Your choice of the discount rate value in Cell B1. Your choice of the compounding period in Cell B2 (n must be greater than 1). In not more than 60 words, describe a scenario of your preference (e.g., savings, investment, or project valuation) using the discount rate and compounding period above and indicate if you are intending to calculate the PV or FV. Place your description in Cell E1. You may merge some cells if necessary. Excel FV Based on your scenario, input your choice of PV (or FV) value in Cell B3. Use the cel FV (or PV) function to compute the resulting FV (or PV) in Cell B4. Finally, in Cell B5, use the FV (or PV) formula to compute the resulting FV (or PV). Note that your answers in Cells B4 and B5 should be identical. In Column C, where applicable, display the formula that you used in Column B. (8 marks)Step by Step Solution
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