Question
Solve each question in an excel spreadsheet with the formulas showing. Part I: Future Value Construct a table and a graph showing the relationship between
Solve each question in an excel spreadsheet with the formulas showing.
Part I: Future Value
Construct a table and a graph showing the relationship between Interest Rates, Time, and Future Value by showing how $5,000 would grow each successive year over a 30 year period at different interest rates. Use $5,000 for your present value and calculate the future value of this $5,000 each year over the 30 year period at 0%, 2%, 4%, 8%, 10%, 14%, 18%, and 22% compounded annually. Future Value should be the y-axis for your graph and years (or time) should be your x-axis and you should end up with a line for each interest rate on your graph.
Please insert your graph (chart) under your table of future values.
Part II: Present Value
Construct a table and a graph showing the relationship between Interest Rates, Time, and Present Value by showing how $5,000 pushed a year further into the future over a 30 year period would be discounted at different interest rates. Use $5,000 for your future value and calculate the present value of this $5,000 each year over the 30 year period at 0%, 2%, 4%, 8%, 10%, 14%, 18%, and 22% compounded annually. Present Value should be the y-axis for your graph and years (or time) should be your x-axis and you should end up with a line for each interest rate on your graph.
Please insert your graph (chart) under your table of future values.
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