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Answered Same Day Jun 15, 2021

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Rishi answered on Jun 15 2021
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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%?
            Answer: $ 30,112
        (2)    What will $110,000 grow to be in 9 years if it is invested today at 11%?
            Answer: $ 281,384
        (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 child’s college?
            Answer: $36,539
        (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?
            Answer: $197,117
        (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%
            Answer: 16.06 years
        (7)    At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years?
            Answer: 9%
&"Arial,Regular"&10 Wk 2 Financial Exercises - Part...
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