The data has been collected in the spreadsheet below. Reference the spreadsheet and perform the required analysis to answer ALL FOUR PARTS of the question below (PARTS G, H, I, AND J). Do not round intermediate calculations. Enter your answers as positive values.

*** BE SURE TO ANSWER ALL FOUR PARTS OF THE QUESTION. THESE PARTS INCLUDE G, H, I, AND J. ***

A 1 Time value of money 2 3 4 5 Interest rate (1) 6 7 8 a. Finding FV Investment (PV) 11 12 13 14 15 16 17 Number of years (N) Future value (FV) 0 1 2 3 4 5 9 b. Creating a table with FVs at various interest rates and time periods using Data Table 10 Year (B6) Interest Rate (B5) B 29 30 31 32 33 34 35 36 37 38 39 c. Finding PV 40 Future value (FV) $1,000 10% 6 54 Doubled population in millions (FV) 55 Number of years required to double (N) 56 0% 18 19 Creating a graph with years on the horizontal axis and FV on the vertical axis 20 21 22 23 24 25 26 27 28 61 Present value of ordinary annuity (PV) 62 Future value of ordinary annuity (FV) 63 C 57 f. Finding the PV and FV of an ordinary annuity 58 Annuity (PMT) 59 Interest rate (1) 60 Number of years (N) Formula #N/A 70 Present value (PV) 71 41 Discount rate (1) 42 Number of years (N) 43 Present value (PV) 44 45 d. Finding the rate of return provided by the security 46 Cost of security (PV) 47 Future value of security (FV) 48 Number of years (N) 49 Rate of return (1) 50 51 e. Calculating the number of years required to double the population 52 Current population in millions (PV) 53 Growth rate (1) 6% $1,000 10% 6 $1,000 $3,000 6 37.7 2% $1,000 16% 6 #N/A #N/A Formulas #N/A #N/A 64 g. Recalculating the PV and FV for part f if the annuity is an annuity due 65 Present value of annuity due (PV) #N/A #N/A #N/A #N/A D 72 i. Finding the annual payments for an ordinary annuity and an annuity due 73 Present value (PV) $1,000 74 Discount rate (1) 9% 75 Number of years (N) 12 76 Annual payment for ordinary annuity (PMT) 77 Annual payment for annuity due (PMT2) 20% 66 Future value of annuity due (FV) 67 68 h. Recalculating the PV and the FV for parts a and c if the interest rate is semiannually compounded 69 Future value (FV) #N/A #N/A #N/A #N/A E F G Formulas H Year (B6) #N/A 0 1 2 3 4 5 1 #N/A #N/A #N/A #N/A #N/A #N/A 0% J Interest Rate (B5) #N/A #N/A #N/A #N/A #N/A #N/A 6% K #N/A #N/A #N/A #N/A #N/A #N/A 20% L M 78 79 j. Finding the PV and the FV of an investment that makes the following end-of-year payments 80 81 82 83 84 85 Interest rate (1) Year 1 2 3 92 Deposit (PV) 93 Number of days per year 94 95 86 Present value of investment (PV) 87 Future value of investment (FV) 88 89 k. Five banks offer the same nominal rate on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily. 90 (1) Calculating the effective annual rate for each bank and the future values of the deposit at the end of 1 year and 2 years 91 Nominal rate (INOM) 8% 106 Number of years (N) 107 108 109 Payment (PMT) 110 118 119 120 121 122 123 124 Creating a graph that shows 125 126 127 128 129 130 131 132 133 134 135 136 137 138 Payment $100 $300 $400 139 140 141 142 111 I. Setting up the amortization schedule 112 Original amount of mortgage (PV) 113 Interest rate (1) 114 Term to maturity, years (N) 115 116 Annual payment (PMT) 117 Year 1 2 A 96 EAR 97 FV after 1 year 98 FV after 2 years 99 100 (2) Calculating the nominal rates that will cause all of the banks to provide the same effective annual rate as Bank A 101 B D 102 Nominal rate (INOM) 103 104 (3) Calculating the amount of payment to be made annually for A, semiannually for B, quarterly for C, monthly for D, and daily for E 105 Needed amount (FV) $3,500 1 3 4 $3,500 365 A B Beginning Balance 9% B #N/A #N/A $16,000 9% 4 Payment #N/A Formula Interest D E Repayment of Principal w the payments are divided between interest and principal repayment over time E Ending Balance Formulas EAR FV after 1 year FV after 2 years Nominal rate (INOM) Payment (PMT) Formulas Year 1 2 3 4 A #N/A #N/A #N/A B #N/A A #N/A Beginning Balance #N/A #N/A #N/A #N/A F B #N/A #N/A #N/A #N/A B #N/A Payment #N/A #N/A #N/A #N/A C #N/A #N/A #N/A D #N/A C #N/A Interest #N/A #N/A #N/A #N/A D #N/A #N/A #N/A E #N/A D #N/A Repayment of Principal #N/A #N/A #N/A #N/A E #N/A #N/A #N/A E #N/A Ending Balance #N/A #N/A #N/A #N/A a. Find the FV of $1,000 invested to earn 10% after 6 years. Round your answer to the nearest cent. b. What is the investment's FV at rates of 0%, 6%, and 20% after 0, 1, 2, 3, 4, and 5 years? Round your answers to the nearest cent. Year 0 1 2 3 4 LO 1771.56 5 $ A A SA 0% 1000 1000 1000 1000 1000 1000 Interest Rate 6% 1000 1060 1123.6 1191.02 1262.48 1338.23 20% 1000 1200 1440 1728 2073.6 2488.32 c. Find the PV of $1,000 due in 6 years if the discount rate is 10%. Round your answer to the nearest cent. 564.47 d. A security has a cost of $1,000 and will return $3,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places. 20.09 % e. Suppose California's population is 37.7 million people, and its population is expected to grow by 2% annually. How long will it take for the population to double? Round your answer to the nearest whole number. 35 years f. Find the PV of an ordinary annuity that pays $1,000 each of the next 6 years if the interest rate is 16%. Then find the FV of that same annuity. Round your answers to the nearest cent. PV of ordinary annuity: $ FV of ordinary annuity: $ 3684.74 8977.48 g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent. PV of annuity due: $ FV of annuity due: $ h. What will the FV and the PV for parts a and c be if the interest rate is 10% with semiannual compounding rather than 10% with annual compounding? Round your answers to the nearest cent. FV with semiannual compounding: $ PV with semiannual compounding: $ i. Find the annual payments for an ordinary annuity and an annuity due for 12 years with a PV of $1,000 and an interest rate of 9%. Round your answers to the nearest cent. Annual payment for ordinary annuity: $ Annual payment for annuity due: j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 9%. Year 1 2 3 Payment $100 $300 $400 Round your answers to the nearest cent. PV of investment: $ FV of investment: $ A 1 Time value of money 2 3 4 5 Interest rate (1) 6 7 8 a. Finding FV Investment (PV) 11 12 13 14 15 16 17 Number of years (N) Future value (FV) 0 1 2 3 4 5 9 b. Creating a table with FVs at various interest rates and time periods using Data Table 10 Year (B6) Interest Rate (B5) B 29 30 31 32 33 34 35 36 37 38 39 c. Finding PV 40 Future value (FV) $1,000 10% 6 54 Doubled population in millions (FV) 55 Number of years required to double (N) 56 0% 18 19 Creating a graph with years on the horizontal axis and FV on the vertical axis 20 21 22 23 24 25 26 27 28 61 Present value of ordinary annuity (PV) 62 Future value of ordinary annuity (FV) 63 C 57 f. Finding the PV and FV of an ordinary annuity 58 Annuity (PMT) 59 Interest rate (1) 60 Number of years (N) Formula #N/A 70 Present value (PV) 71 41 Discount rate (1) 42 Number of years (N) 43 Present value (PV) 44 45 d. Finding the rate of return provided by the security 46 Cost of security (PV) 47 Future value of security (FV) 48 Number of years (N) 49 Rate of return (1) 50 51 e. Calculating the number of years required to double the population 52 Current population in millions (PV) 53 Growth rate (1) 6% $1,000 10% 6 $1,000 $3,000 6 37.7 2% $1,000 16% 6 #N/A #N/A Formulas #N/A #N/A 64 g. Recalculating the PV and FV for part f if the annuity is an annuity due 65 Present value of annuity due (PV) #N/A #N/A #N/A #N/A D 72 i. Finding the annual payments for an ordinary annuity and an annuity due 73 Present value (PV) $1,000 74 Discount rate (1) 9% 75 Number of years (N) 12 76 Annual payment for ordinary annuity (PMT) 77 Annual payment for annuity due (PMT2) 20% 66 Future value of annuity due (FV) 67 68 h. Recalculating the PV and the FV for parts a and c if the interest rate is semiannually compounded 69 Future value (FV) #N/A #N/A #N/A #N/A E F G Formulas H Year (B6) #N/A 0 1 2 3 4 5 1 #N/A #N/A #N/A #N/A #N/A #N/A 0% J Interest Rate (B5) #N/A #N/A #N/A #N/A #N/A #N/A 6% K #N/A #N/A #N/A #N/A #N/A #N/A 20% L M 78 79 j. Finding the PV and the FV of an investment that makes the following end-of-year payments 80 81 82 83 84 85 Interest rate (1) Year 1 2 3 92 Deposit (PV) 93 Number of days per year 94 95 86 Present value of investment (PV) 87 Future value of investment (FV) 88 89 k. Five banks offer the same nominal rate on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily. 90 (1) Calculating the effective annual rate for each bank and the future values of the deposit at the end of 1 year and 2 years 91 Nominal rate (INOM) 8% 106 Number of years (N) 107 108 109 Payment (PMT) 110 118 119 120 121 122 123 124 Creating a graph that shows 125 126 127 128 129 130 131 132 133 134 135 136 137 138 Payment $100 $300 $400 139 140 141 142 111 I. Setting up the amortization schedule 112 Original amount of mortgage (PV) 113 Interest rate (1) 114 Term to maturity, years (N) 115 116 Annual payment (PMT) 117 Year 1 2 A 96 EAR 97 FV after 1 year 98 FV after 2 years 99 100 (2) Calculating the nominal rates that will cause all of the banks to provide the same effective annual rate as Bank A 101 B D 102 Nominal rate (INOM) 103 104 (3) Calculating the amount of payment to be made annually for A, semiannually for B, quarterly for C, monthly for D, and daily for E 105 Needed amount (FV) $3,500 1 3 4 $3,500 365 A B Beginning Balance 9% B #N/A #N/A $16,000 9% 4 Payment #N/A Formula Interest D E Repayment of Principal w the payments are divided between interest and principal repayment over time E Ending Balance Formulas EAR FV after 1 year FV after 2 years Nominal rate (INOM) Payment (PMT) Formulas Year 1 2 3 4 A #N/A #N/A #N/A B #N/A A #N/A Beginning Balance #N/A #N/A #N/A #N/A F B #N/A #N/A #N/A #N/A B #N/A Payment #N/A #N/A #N/A #N/A C #N/A #N/A #N/A D #N/A C #N/A Interest #N/A #N/A #N/A #N/A D #N/A #N/A #N/A E #N/A D #N/A Repayment of Principal #N/A #N/A #N/A #N/A E #N/A #N/A #N/A E #N/A Ending Balance #N/A #N/A #N/A #N/A a. Find the FV of $1,000 invested to earn 10% after 6 years. Round your answer to the nearest cent. b. What is the investment's FV at rates of 0%, 6%, and 20% after 0, 1, 2, 3, 4, and 5 years? Round your answers to the nearest cent. Year 0 1 2 3 4 LO 1771.56 5 $ A A SA 0% 1000 1000 1000 1000 1000 1000 Interest Rate 6% 1000 1060 1123.6 1191.02 1262.48 1338.23 20% 1000 1200 1440 1728 2073.6 2488.32 c. Find the PV of $1,000 due in 6 years if the discount rate is 10%. Round your answer to the nearest cent. 564.47 d. A security has a cost of $1,000 and will return $3,000 after 6 years. What rate of return does the security provide? Round your answer to two decimal places. 20.09 % e. Suppose California's population is 37.7 million people, and its population is expected to grow by 2% annually. How long will it take for the population to double? Round your answer to the nearest whole number. 35 years f. Find the PV of an ordinary annuity that pays $1,000 each of the next 6 years if the interest rate is 16%. Then find the FV of that same annuity. Round your answers to the nearest cent. PV of ordinary annuity: $ FV of ordinary annuity: $ 3684.74 8977.48 g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent. PV of annuity due: $ FV of annuity due: $ h. What will the FV and the PV for parts a and c be if the interest rate is 10% with semiannual compounding rather than 10% with annual compounding? Round your answers to the nearest cent. FV with semiannual compounding: $ PV with semiannual compounding: $ i. Find the annual payments for an ordinary annuity and an annuity due for 12 years with a PV of $1,000 and an interest rate of 9%. Round your answers to the nearest cent. Annual payment for ordinary annuity: $ Annual payment for annuity due: j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 9%. Year 1 2 3 Payment $100 $300 $400 Round your answers to the nearest cent. PV of investment: $ FV of investment: $