Reference no: EM13979466
Ling opened an annuity to save for a down payment on a home. The annuity was created with an initial deposit of $1,000 (end of year). At the end of each of the following ten years, a payment of $4000 is made into the annuity. The interest rate is 2.5% compounded annually. Submit the following in a spreadsheet.
a) Compute the balance at the end of 10 years by tabulating the deposits, interest and balance for each year in a spreadsheet. That is, create a spreadsheet with three columns containing 1) the annual deposit, 2) interest earned for the preceding year, and 3) the balance for each year. Use a year 0 for the initial deposit which would be in the balance column. Use equations which refer to cell labels. The balance in the last row should be the future value of this annuity at the end of ten years.
b) Use the Excel FV function to calculate the future value in ten years for this situation. You should get the same answer as the tabulation of part a.
c) Use the Excel PMT function to determine the payment required each year (instead of $4000) to achieve $50,000 in ten years (same initial deposit, interest rate and years).
d) Use the Excel NPER function to determine how many years it will take Ling to achieve $50,000 but using a rate of 2.0% annually, using the initial deposit and payment as initially stated. Show two decimal places
e) Use the Excel RATE function to determine the interest rate Ling would need to achieve $50,000 using the same number of periods, initial deposit and payment as initially stated.
f) Use the Excel PV function to determine the upfront deposit that Ling would need to achieve $50,000 using the same number of periods, interest rate and payment as initially stated.
|
Briefly explain why the constitutional framers based
: Evaluate how separation of powers and checks and balances are working out in practice, today, justifying your assessment with persuasive reasoning and examples.
|
|
What is imaginary part of index of refraction for a medium
: What is the imaginary part of the index of refraction for a medium in which the electric field amplitude of a 546 nm light beam is attenuated to 0.10 of its starting value after travelling a distance of 90 nm in the medium? (Note that when the wa..
|
|
Difference between ebit and taxable income
: The difference between EBIT and taxable income must be the interest expense. Use this same procedure to complete similar Problems.] Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the..
|
|
Memo for the human resources manager
: The organization is planning to implement a company-wide policy with respect to bereavement leave that provides the same benefits to all employees, regardless of their province of employment and length of employment. Prepare a memo for the Human R..
|
|
Use the excel fv function to calculate the future value
: Use the Excel FV function to calculate the future value in ten years for this situation. You should get the same answer as the tabulation of part a.
|
|
Total real return on investment
: If the inflation rate was 3.7 percent over the past year, what would be your total real return on investment?
|
|
Source of common equity
: What is the firm's weighted average cost of capital (WACC1) if it uses retained earnings as its source of common equity?
|
|
Design a networked system using diagramming software
: Design a networked system using diagramming software to meet the specification given in the assignment scenario in terms of user requirements and network infrastructure
|
|
What is the force on the car
: A student gets his car stuck in a snow drift. Not at a loss, having studied physics, he attaches one end of a stout rope to the vehicle. what is the force on the car?
|