Time Value of Money

Complete the following exercise using MS Excel. Using the Present Value and Future Value Equations

1. If you invest $100 at 5% interest, how much do you have after 11 years?

2. How much must you invest now at 6% to have accumulated $1,500 in six years?

3. If you want to have $30,000 in 15 years to help with a childs educational expenses, how much do you need to save each year if the return is 4%?

4. If you invested $200 at 5%, how much would it be worth in 30 years?

5. How many years does it take to double your money if it is invested at 6%?

6. If you invest $10,000 in a 20 year annuity paying 5%, what would be the annual payment made to you?

7. If you have a student loan balance of $10,000, with an interest rate of 3%, what is the annual payment if the term is 6 years?

8. How much interest will you pay on the student loan in the previous exercise?

9. If I save $100 per year for 30 years, earning 3%, how much will I have at the end of 30 years?

10. If the interest rate in the previous exercise is 5%, how long will it take to accumulate the same amount?

11. How much interest was accumulated in each of the previous two exercises