Problems 19 and 21. Show what formula to use in excel?
You want to accumulate $50,000 by saving $3,000 of the of each of the next 10 years. At what interest rate must you meet your goal? (Solving for interest rate of Ordinary annuity)You want to accumulate $100,000 by saving $3,000 at the of each of the next 10 years. At what interest rate must you invest to meet your goal? Non-Annual Compounding (Solving for FV) You plan to invest $50,000 today at an annual interest rate of 12% over 5 years. What the future value of your investment if interest is compounded. Annually Semi-annually Bi-monthly Quarterly Monthly Daily (Solving for FV) You plan to invest $200,000 today at an annual interest rate of 12% over 10 years. What will be the future value of your investment if interest is compounded, Annually Semi-annually Bi-monthly Quarterly Monthly (Non-annual annuity) Timothy just bought a car for $45,000 with a $10,000 deposit. He borrowed the balance with a $35,000 loan from the automobile dealer. The loan is for 5.6% annual, compounded and payable monthly over 5 years. What will monthly payments? If he decides to start the first on day 1, what will be his monthly payments thereafter? (Non-annual annuity) Jasmine just bought a car for $35,000 with a $5,000 deposit. She borrowed the balance with a $30,000 loan from the automobile dealer. The loan is for 3.6% annual, compounded and payable monthly over 3 years. What will be her monthly payments? If he decides to start the first payment on day 1, what will be his monthly payments thereafter? (Non-annual annuity) Stan wants to plan for his retirement in 30 years. During his 30 year retirement, he plans to spend $5,000 monthly, while earning 10% his retirement funds. He will save monthly in his 410K retirement fund with his employer over the next 30 years where he plans to earn 12% annually. How must he save monthly, beginning at the end of this month to meet his objectives. (Non-annual annuity) Stan wants to plan for his retirement in 10 years. During his 30 year retirement, he plans to spend $5,000 monthly, while earning 10% his retirement funds. He will save monthly in his 401K retirement fund with his employer over the next 30 years where he plans to earn 12% annually. How much must he save monthly, beginning at the end of this month to meet his objectives. How will his results change if he begins savings at the beginning of the current month? (Growth annuity) Maureen has just signed a professional basketball contract where she will earn $250,000 the first year and will receive a 10% annual increase every year for 10 years. She plans to save 20% of her annual salary each year in a mutual fund where she expects to earn 15% annually. How much will she in her savings after 10 years? (Growth annuity) Michael has just signed a professional basketball contract where he will earn $2, 500,000 the first year and will receive a 5% annual increase every year for 10 years. He plans to save 50% of his annual salary each year in a mutual fund where he expects to earn 16% annually. How much will she have in his savings after 10 years
