The goal of this homework is to generate a table that displays the influence of

interest rate, r, and the coompounding frequency, n, on the final balance.

1. In the first table below, 10 different APRs and 8 different compounding frequencies are displayed at the top and the left

margins respectively. Enter formulas in the blue cells so that they display the balances after 5 years ( formatted as US currency) when

$1,000 is invested. (Make absolute referencing to the cells in B11 and B12 when you use these two parameters in your formulas.)

2. In the second table, make the blue cells display the APY (formatted as percents with 2 decimal digits.) Remember that APY does not

depend on the initial investment amount or the time (years) of investment. It is simply the percentage of the total interest earning in

one year relative to the initial investment.

DON'T IGNORE THIS! Excel Homework 3 The goal of this homework is to generate a table that displays the influence of interest rate, r, and the coompounding frequency, n, on the final balance. 1. In the first table below, 10 different APRs and 8 different compounding frequencies are displayed at the top and the left margins respectively. Enter formulas in the blue cells so that they display the balances after 5 years (formatted as US currency, when $1,000 is invested. (Make absolute referencing to the cells in B11 and B12 when you use these two parameters in your formulas.) 2. In the second table make the blue cells display the APY (formatted as percents with 2 decimal digits. Remember that APY does not depend on the initial investment amount or the time (years) of investment. It is simply the percentage of the totalterest earning in one year relative to the initial investment. DON'T IGNORE THIS! Initial Investment $1,000.00 Years of Investment 5 APR-> 2% 10% Compounding in number of Period periods in a year Year Semi Year 2 Quarter 4 Month 12 Day 365 Hour 8760 Minute 525600 Second 31536000 Compounded Continuously APY Table APR-> 3% 5% 6% 7% 89 10% Compounding Period n number of periods in a year Year Semi-Year 2 Quarter 3 Month 12 Day 365 Hour 3760 Minute 525600 Second 31536000 Compounded Continuously 3. (The purpose of this question is to check if you understand the first table that you've built yourself. Write your answer anywhere near this question.) If you invest $1,000 for 5 years with APR 3 % compounded 4 times a year, how much total interest will have earned? (a) Which cell in the first table) did you look up (in order to answer this question?) (b) How much will be the total interest earning? 4. (The purpose of this question is to check if you understand the second table that you've built yourself. Write your answer anywhere near this question Suppose you borrow $1.00 for 1 year from a bank with APR 7% compounded monthly. How much will you be owing at the end of one year? [ DO NOT COMPUTEI YOU MUST "READ" YOUR ANSWER DIRECTLY FROM THE SECOND TABLE I] (a) Which cell in the second table) did you look up (in order to answer this question?) (b) How much will you be owing