Calculate the value of $100 invested at various interest rates and compounding periods. (If compounding frequency...
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Calculate the value of $100 invested at various interest rates and compounding periods. (If compounding frequency is not mentioned then assume annual compounding) 1. You invest $100 in a bank for one year at 7% interest. 2. You invest $100 in a bank for five years at 5% interest. 3. You invest $100 in a bank for twenty years at 3% interest. 4. You invest $100 in a bank for one year at 10% compounded quarterly. Answer 1 Answer 2 Answer 3 Answer 4 Mathematical Formula: FVt=PV (1+r)t * POINTS (1 each) 0 0 0 Copy answer from 1190 and then paste as value. Right click cell B190 and then you will see paste options-> select value. Alternatively After copying, select B190, press CTRL+ALT+V and then select values in paste options. For cells B190 to 8193, only VALUES will be checked SO DO NOT WRITE the formula that you are supposed to write on 1190 inside these cells Inputs: PV 100 t frequency FV= 7% various <==enter from problem in percentage format (e.g. 7%) but according to the compounding period <=various years <= compounding frequency per year (1 for annual, 4 for quarterly) Enter the formula "=1186*(1+1187/1189)^(1188*1189)" here Calculate the value of $100 invested at various interest rates and compounding periods. (If compounding frequency is not mentioned then assume annual compounding) 1. You invest $100 in a bank for one year at 7% interest. 2. You invest $100 in a bank for five years at 5% interest. 3. You invest $100 in a bank for twenty years at 3% interest. 4. You invest $100 in a bank for one year at 10% compounded quarterly. Answer 1 Answer 2 Answer 3 Answer 4 Mathematical Formula: FVt=PV (1+r)t * POINTS (1 each) 0 0 0 Copy answer from 1190 and then paste as value. Right click cell B190 and then you will see paste options-> select value. Alternatively After copying, select B190, press CTRL+ALT+V and then select values in paste options. For cells B190 to 8193, only VALUES will be checked SO DO NOT WRITE the formula that you are supposed to write on 1190 inside these cells Inputs: PV 100 t frequency FV= 7% various <==enter from problem in percentage format (e.g. 7%) but according to the compounding period <=various years <= compounding frequency per year (1 for annual, 4 for quarterly) Enter the formula "=1186*(1+1187/1189)^(1188*1189)" here
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Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
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