Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are to answer the following questions. You can submit a Word doc or an Excel file with the answers: 1) I want to know

image text in transcribed
You are to answer the following questions. You can submit a Word doc or an Excel file with the answers: 1) I want to know how much a certain amount of money will be worth in 10 years. The starting amount you have today will be your birth month and birth year. So if you were born in March of 2001, the starting amount would be $32,001. The interest rate will be your birth month. So if you were born in March of 2001, the interest rate would be 3%. For this question, tell me how much you would have in 10 years if the interest is compounded annually. Then tell me how much it would be if the interest is compounded monthly. And tell me how you computed this (using a financial calculator, excel or a regular calculator with an exponent key). 2) You need $20,000 ten years from now and you want to put aside money now so that you know the need will be taken care of. If you can get a ten year CD yielding 4% compounded annually, how much would you have to put aside today to have exactly $20,000 ten years from now. 3) Using a random interest rate and/or number of years, show me how the rule of 72 works

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions