solve these questions using excel
Go to www.myfinancelab.com to complete these exercises online 6-1. (Caloulating the future value of an ordinary annulty) Calculate the future value of each of ) and get instant feedback. the following streams of payments. a. 430 a year for 12 years compounded annually at 6 percent. b. 56 a year for 8 years compounded annually at 8 percent. c. $75 a year for 5 years compounded annually at 3 percent. d. 120 a year for 3 years compounded annually at 10 percent. 6-2. (Calculating the present value of an ordinary annulty) (Related to Checkpoint 6.2 on page 199) Calculate the present value of the following annuities. a. 350 a year for 12 years discounted back to the present at 7 percent. b. 260 a year for 5 years discounted back to the present at 8 percent. c. $3,000 a year for 8 years discounted back to the present at 6 percent. d. 60 a year for 3 years discounted back to the present at 10 percent. 6-3. (Calculating the future value of an ordinary annuity) (Related to Finance for Life: Sav. ing for Retirement on page 204) Mike, 30, has started a small business and wants to start saving for his retirement when he turns 65 . He has decided to invest 6,000 at the end of every year in a pension plan that earns him 6 percent compounded annually. How much will Mike get when he retires? Mike then decided to keep reinvesting the profits in his business for a further five years and start saving once he is 35 years old. How much will Mike get if he starts saving the same amount and investing in the same plan as before? 5-13. (Solving for ) (Related to Checkpoint 5.5 on page 175) How many years will the following take? a. $500 to grow to $1,039.50 if it's invested at 5 percent compounded annually b. $35 to grow to $53.87 if it's invested at 9 percent compounded annually c. $100 to grow to $298.60 if it's invested at 20 percent compounded annually d. $53 to grow to $78.76 if it's invested at 2 percent compounded annually 5-14. (Solving for I) (Related to Checkpoint 5.6 on page 176) At what annual interest rate would the following have to be invested? a. $500 to grow to $1,948.00 in 12 years b. $300 to grow to $422.10 in 7 years c. $50 to grow to $280.20 in 20 years d. $200 to grow to $497.60 in 5 years 5-15. (Calculating present value) (Related to Checkpoint 5.4 on page 173) What is the present value of the following future amounts? a. $800 to be received 10 years from now discounted back to the present at 10 percent b. $300 to be received 5 years from now discounted back to the present at 5 percent c. $1,000 to be received 8 years from now discounted back to the present at 3 percent d. $1,000 to be received 8 years from now discounted back to the present at 20 percent
