Reference no: EM132606623

Question - Single cash flow

Type the correct equations and use Excel to calculate the answers. For example, if a question asks you how much is the present value of $500 ten years from now with a discount rate of 7%.

You first have to type: PV = 500 / (1+0.07)^10

Then use the excel function =pv(0.07,10,0,500) to find the answer of $254.17.

The portions highlighted in red are the ones you have to type on your assignments.

1. If you have $10,000 today, how much will you have if you invest it for 8 years at 5% interest compounded annually?

2. If you invested $50,000 10 years ago, how much will you have today if you earned 8% interest compounded annually?

3. How much would you pay today to receive $56,044 twenty years from now if your investments earn 9%?

4. If you would like to have $20,000 in 5 years, how much should you invest today if your investment earns 10%?