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.

  • CreatedDecember 19, 2014
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