A B C D E F G H Instructions: Build a model to determine how long it takes for an investment Interest Rate 5% to grow by 3X assuming an interest rate of 4.6%. Multipier 3 Your answer Correct Answer H 24.43A B C D E F G H Instructions: Build a model to determine the future value of an initial Initial Deposit $32,000 investment of $32,000 that grows at a rate of 8.3% for 50 years. Interest Rate 8.3% Assume the stated interest rate is an APR and that Years 50 interest is compounded quarterly. Your answer Correct Answer $1,945,484.15 What is the effective interest rate you are earning? 4 8.56% What is the future value if you compound the initial balance at the EAR for 50 years? 5 $1,945,484.15B D E G Instructions: Build a model to determine the present value of saving Savings Amount $14,000 $14,000 each year for 14 years if the interest rate is 5.1%. Interest Rate 5.10% Assume that you start saving today. Years 14 First, use a math formula to solve the model. Your answer Correct Answer 6 $144,721.83 Second, use an Excel formula to solve the model. 7 $144,721.83 Third, build a model that values each cash flow separately. Note that the number of years will be 25 or less. 8 $144,721.83 Year Cash Flow PV of $1 PV of Cash FlowInstructions: Build a model to determine the present value of saving Savings Amount $14,000 $14,000 each year for 14 years if the interest rate is 5.1%. Interest Rate 5.10% Assume that you start saving in one year. Years 14 First, use a math formula to solve the model. Your answer Correct Answer 9 $137,699.18 Second, use an Excel formula to solve the model. 10 $137,699.18 Third, build a model that values each cash flow separately. Note that the number of years will be 25 or less. 11 $137,699.18 Year Cash Flow PV of $1 PV of Cash FlowInstructions: Build a model to determine the future value of an initial Initial Deposit $6,000 investment of $6,000 that grows at a rate of 5.1% for 17 years. Interest Rate 5.10% Assume the stated interest rate is an APR and that Years 17 interest is compounded annually. Your answer Correct Answer 13 $13,976.47 What if interest is compounded quarterly? 14 $14,200.52 What if interest is compounded monthly? 15 $14,252.36Instructions: Build a model to determine how much money you need today to Withdraw Amount $8,000 withdaw $8,000 each year for 16 years if the interest rate is 5.2%. Interest Rate 5.20% Assume that you start withdrawing in one year. Years 16 First, use a math formula to solve the model. Your answer Correct Answer 16 $85,481.00 Second, use an Excel formula to solve the model. 17 $85,481.00 Third, build a model that values each withdraw separately. Note that the number of years will be 25 or less. 18 $85,481.00 Year Withdraw PV of $1 PV of Withdraw