# Question

If you could put $ 5,000 into a 6 percent investment at the end of each year, how much money could you take out at the end of seven years? See earlier NOTE regarding requirements for Exercises.

A. Solve using a spreadsheet program such as Excel. Indicate the spreadsheet formula showing numeric values rather than cell references. For example, for the value that $ 100 today could grow to in two years, assuming 10 percent annual compounding, the spreadsheet solution formula would be: FV(10%, 2, 0, 100). Note that since there is no annuity payment (PMT) in this problem, it is necessary to show the blank between two commas or a zero after the number of periods. In addition, answer the questions using formulas with cell references.

B. Solve using a financial calculator. This is optional.

A. Solve using a spreadsheet program such as Excel. Indicate the spreadsheet formula showing numeric values rather than cell references. For example, for the value that $ 100 today could grow to in two years, assuming 10 percent annual compounding, the spreadsheet solution formula would be: FV(10%, 2, 0, 100). Note that since there is no annuity payment (PMT) in this problem, it is necessary to show the blank between two commas or a zero after the number of periods. In addition, answer the questions using formulas with cell references.

B. Solve using a financial calculator. This is optional.

## Answer to relevant Questions

Paula Morduch is considering purchasing a new van for Meals for the Homeless. She expects to buy the van for $ 50,000 four years from today. Solve using a calculator or spreadsheet. a. If she can invest money at 5 percent ...The town of Millbridge has to make a decision on replacing its garbage truck. It has narrowed the choice down to two different models. Model A will initially cost $ 80,000 and then will cost $ 4,100 per year to operate for ...The Town Pool is considering investing $ 3,200 today in a popcorn maker. The annual cash profits from the machine will be $ 500 for each of the 10 years of its useful life. What is the IRR on the investment?A. Solve using a ...Assume that a 6 percent $ 500,000 bond with semiannual interest payments and a remaining life of 10 years could be purchased today, when market interest rates are 4.5 percent. How much would you have to pay to buy the bond? ...On January 1, 2012, Central City issued a 20-year serial bond to finance improvements to the water distribution system. A total of $ 80,000,000 face value of bonds were issued with coupon and maturity rates as ...Post your question

0