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Answered Same Day Jun 15, 2021

## Solution

Rishi answered on Jun 15 2021
Week 2 - Part 1
Week Two Financial Exercises
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+i)^n    FV = PV * (1+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%?
(2)    What will \$110,000 grow to be in 9 years if it is invested today at 11%?
(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 earn 12% while you are investing to pay for your childâ€™s college?
(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: Yes as the Future value of investing \$ 2000 today at an interest rate of 10% for 4 years is \$2928 which is less than \$3000.
(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?
(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%
(7)    At what interest rate must \$112,000 be invested so that it will be worth \$392,000 in 14 years?