Times New Roman 12 AA b Copy v Format General B ili II IUB Wrap Text Merge & Center $ %, Conditi Format fx Problem Set 1, Part 1 B C E H 1 J Week 3 Financial Exercises Problem Set 1, Part 1 Complete the following problems using either the financial functions in Excel or the Present Value and Future Value formulas as noted below: PV-FV * 1/(1+1) 'n FV-PV(+i)n (1) If you wish to have $60,000 in 8 years, how much do you need to deposit in the bank today if the account pays an interest rate of 9%? Answer: (2) What will $110.000 grow to be in 9 years if it is invested today at 11%? Answer: (3) You would like to have $200,000 in a college fund in 15 years. How much do you need today if you expect to eam 12% while you are investing to pay for your child's college? Answer: % is this a good B D E F G H (4) You have been offered $3,000 in 4 years for providing $2,000 today into a business venture with a friend. If interest rates are 10%, is this a good investment for you? Answer: (5) What will $82,000 grow to be in 11 years if it is invested today at 8% and the interest rate is compounded monthly? Answer: (6) How many years will it take for $136,000 to grow to $468,000 if it is invested in an account with an annual interest rate of 8% Answer: (7) At what interest rate must $112.000 be invested so that it will be worth $392,000 in 14 years? Answer: 53