Use an MS Excel spreadsheet to calculate the solutions for the problems listed below. You must...

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Use an MS Excel spreadsheet to calculate the solutions for the problems listed below. You must demonstrate your detailed calculations by embedding the formulas/functions in the cells, rather than displaying those details as you would in a word processing document. You are permitted to work with other students from this course, but it is important that each student develop comprehension of each of the techniques required in this assignment. Of course, your individual submission must be unique and not shared with other students (i.e., each student must create his own unique spreadsheet).

Chapter 3 Problems: 1 (a & b only), 2–7, 9–11, 14–15
Chapter 4 Problems: 1–7, 9, 11, 13, 18, 20

Note: The Time-Value of Money (TVM) concepts (i.e., PV, FV, YTM, NPV, IRR, etc.) you will apply in this course were introduced and learned in the prerequisite course, Corporate Finance.

chp-3-questions-epwpihzb-v5c03hcl.pdf chpt-4-questions-4vznlwps-mfntg5ih.pdf

Sumit · Accepted Answer

Chapter 3
	1
	(a).
	Given :
	Amount	$   12,000
	Interest Rate 	6%
	Period 	7	Years
	Future Value	$   18,043.56
	(b).
	Given :
	Amount	$   12,000
	Interest Rate 	2%
	Period 	28	Quarters
	Future Value	$   22,374.54
	2
	Given :				Given :
	Amount	$   25,000			Amount	$   25,000
	Interest Rate 	0.50%			Interest Rate 	7.00%
	Period 	12	Months		Period 	1	Year
	Future Value	$   26,541.95			Future Value	$   26,750.00
	Since the future value is more in Compounding annually, hence I would perfer annual compunding
	3
	Given:				Given:
	Periodic Deposit	$   5,000			Periodic Deposit	$   5,000
	Period 	24	Semi-Annual		Period 	23	Semi-Annual
	Interest Rate	4%			Interest Rate	4%
	Future Value	$   195,413.02			Future Value	$   188,089.44
	4
	Given:
	Periodic Deposit	$   1,250
	Period 	16	Quarters
	Interest Rate	2.50%
	Future Value	$   24,225.28
	5
	Year 	Deposit Amount	Future Value at end of 5 year @15% p.a.
	1	$   2,500	$   4,372.52
	2	$   - 0	$   - 0
	3	$   750	$   991.87
	4	$   1,300	$   1,495.00
	Total Future Value		$   6,859.39
	6
	Given:
	Periodic Payment	$   750
	Period 	96	Months
	Interest Rate	1.25%
	Present Value	$   41,793.43
	Total Cash Received	$   72,000
	The Difference is called Time Value of money
	7
	Given:				Given:
	Periodic Payment	$   2,150			Periodic Payment	$   2,150
	Period 	10	Years		Period 	9	Years
	Interest Rate	12.00%			Interest Rate	12.

Use an MS Excel spreadsheet to calculate the solutions for the problems listed below. You must demonstrate your detailed calculations by embedding the formulas/functions in the cells, rather than...

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