Time Value of Money Exercise

We will answer this question using 2 methods available in EXCEL. Please follow the instructions in the next few slides and refer to your textbook for additional help with this exercise.

Your Non-Profit Organization just received $50,000 in seed money from a donor for a capital project that will be started in five years.

You have an opportunity to invest this money for five years at 3%.

How much would this donation be worth in five years if it is compounded monthly?

Please describe your calculations and their context in relation to the problem,