Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve using Excel and explain thank you 2) You are planning to send your daughter to college in 20 years. You estimate that you

please solve using Excel and explain thank you
image text in transcribed
2) You are planning to send your daughter to college in 20 years. You estimate that you will need $100,000 at that time to pay for tuition, room, and board. How much would you need to invest today as a lump sum to achieve your goal 20 years from now if you can earn a rate of return of 10% per year? Use Excel's =PV(RATE,NPER,PMT, [FV] [TYPE]) function. RATE is 10%, NPER is 20 , PMT is $0,FV is $100,000, and TYPE is 0 since payments are made at the end of the period. If the [type] argument is omitted, it takes on the default value of 0 . We use FV as a positive value to represent a cash inflow that results from the return of the investment. In that case, PV will be negative to represent a cash outflow from money being invested

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Financial and Managerial Accounting

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

4th Edition

978-0133251241, 9780133427516, 133251241, 013342751X, 978-0133255584

Students also viewed these Accounting questions