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Please use Excel To see the impact of the interest rate on an investment, (a) Invest $100,000 at 6% for 35 years. Calculate the accumulated

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Please use Excel

To see the impact of the interest rate on an investment, (a) Invest $100,000 at 6% for 35 years. Calculate the accumulated value of the $100,000 at time 0 and then at the end of each of the next 35 years. (2.5 marks) (b) Calculate the present value of $100,000 due in 1 year, 2 years, 3 years, .., 35 years. Assume the interest rate is 10%. (2.5 marks) For both (a) and (b), you should have 5 columns of calculations, assuming the given rate is a i. Effective rate of discount ii. Nominal rate of discount, compounded quarterly iii. Nominal rate of interest, compounded continuously iv. Nominal rate of interest, compounded quarterly v. Effective rate of interest (c) For (a) graph the yearly values just for the effective rate of discount and the effective rate of interest calculations on the same graph. Make sure your x-axis starts at time 0 , not time 1. For (b), graph the yearly values just for the effective rate of discount and the effective rate of interest calculations on the same graph. Make sure your x-axis starts at time 0 , not time 1 ( 2.5 for each graph =5 marks)

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