Solve using a spreadsheet program such as Excel Indicate the spreadsheet formula showing numeric values rather than cell references For example, for the value that $100 today could grow to in 2 years, assuming 10 percent annual compounding, the spreadsheet solution formula would be FV (10 , 2, 0, 100) Note that since there is no annuity payment (PMT) in this problem, it is necessary to show the blank between two commas or a zero after the number of periods In addition, answer the questions using formulas with cell references Solve using a financial calculator (optional) 5 14 How much will $20,000 invested today at 3 percent interest be worth in 5 years if it is compounded annually Monthly 5 15 If we receive $5,000 eight years from now, how much is that equivalent to today, if we believe that we can earn 5 percent on other opportunities 5 16 If you have $8,500 today and you could earn 3 percent interest per year, how many years would it be before you would accumulate $10,000 Assume annual compounding 5 17 How much must you put into a 5 percent investment annually to have $75,000 eight years from now Assume all payments are made at the end of each period 5 18 If you could put $5,000 into a 6 percent investment at the end of each year, how much money could you take out at the end of 7 years 5 19 Suppose your parents have just retired and have $1 million in a retirement account For how many years can they withdraw $5,000 at the beginning of each month for expenses, assuming that the account will continue to earn a 5 percent annual return until it is exhausted 5 20 See Problem 5 19 Now, suppose your parents have decided that they will depend on their retirement savings for 20 years Everything else remains the same How much money can they afford to withdraw at the beginning of each month 5 21 Paula Morduch is considering purchasing a new van for Meals for the Homeless (Meals) She expects to buy the van for $50,000 4 years from today Solve the following using a calculator or spreadsheet

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Solve using a spreadsheet program such as Excel. Indicate the spreadsheet formula showing numeric values rather than cell references. For example, for the value that $100 today could grow to in 2 years, assuming 10 percent annual compounding, the spreadsheet solution formula would be = FV (10%, 2, 0, 100). Note that since there is no annuity payment (PMT) in this problem, it is necessary to show the blank between two commas or a zero after the number of periods. In addition, answer the questions using formulas with cell references.
Solve using a financial calculator. (optional)

5-14. How much will $20,000 invested today at 3 percent interest be worth in 5 years if it is compounded annually? Monthly?
5-15. If we receive $5,000 eight years from now, how much is that equivalent to today, if we believe that we can earn 5 percent on other opportunities?
5-16. If you have $8,500 today and you could earn 3 percent interest per year, how many years would it be before you would accumulate $10,000? Assume annual compounding.
5-17. How much must you put into a 5 percent investment annually to have $75,000 eight years from now? Assume all payments are made at the end of each period.
5-18.If you could put $5,000 into a 6 percent investment at the end of each year, how much money could you take out at the end of 7 years?
5-19. Suppose your parents have just retired and have $1 million in a retirement account. For how many years can they withdraw $5,000 at the beginning of each month for expenses, assuming that the account will continue to earn a 5 percent annual return until it is exhausted?
5-20. See Problem 5-19. Now, suppose your parents have decided that they will depend on their retirement savings for 20 years. Everything else remains the same. How much money can they afford to withdraw at the beginning of each month?
5-21. Paula Morduch is considering purchasing a new van for Meals for the Homeless (Meals). She expects to buy the van for $50,000 4 years from today. Solve the following using a calculator or spreadsheet.