Answer the following questions, using the spreadsheet model to do the calculations. Fill out all highlighted cells. I$/$YR $=$

$N=$

PMT $=$

Outputs

Use Formula: FV $=PV(1+1{)}^N=$

Use Excel FV Function:

c$.$ Use information in part $($a$)$ to create a table that shows the FV at $0\%,5\%,$ and $20\%$ for $0,1,2,3,4,$ and $5$ years.

Then create a graph with years on the horizontal axis and FV on the vertical axis to display your results.

Place your graph here darr

d$.$ Find the PV of $$1,000$ due in $5$ years if the discount rate is $10\%$ per year. Again, work the problem with a formula

and also by using the function wizard.

Inputs

$FV=$

$\frac{\text{I}}{Y}R=$

$N=$

a$.$ Find the FV of $$1,000$ invested to earn $10\%$ annually $5$ years from now. Answer this question by using a math

formula and also by using the Excel function, $f_x.$

Inputs

Example

Outputs

Use Formula: FV $=$ PV $(1+1{)}^N=$

Use Excel FV Function:

$1610\mathrm{.}51=-D{7}^{**}(1+D8{)}^{D}9$

$1610\mathrm{.}51=FV(D8,D9,D10,D7,0)$

b$.$ What would the FV for part $($a$)$ be if the interest rate were $10\%$ with semiannual compounding rather than $10\%$

with annual compounding?

Inputs

$PV=$

$\frac{\text{I}}{Y}R=$

$N=$

$PMT=$

Outputs

Use Formula: FV $=$ PV $(1+1{)}^N=$

#N$/$A

Use Excel FV Function:

#N$/$A

c$.$ Use information in part $($a$)$ to create a table that shows the FV at $0\%,5\%,$ and $20\%$ for $0,1,2,3,4,$ and $5$ years.

Then create a graph with years on the horizontal axis and FV on the vertical axis to display your results.