Compound Interest with Excel: Dependence on Parameters. Suppose you deposit $SOO in an account \vith an APR of 3% and annual compounding. As explained in Using Technology on page 211, fi ll the cells on an Excel spreadsheet as follows:

 

 

By changing the input values. answer the following questions.

a. What is the balance after 20 years?

b. If you double the APR in pan (a), will the balance be double, more than double, or less than double the balance in pan (a)?

c. If you do uble the number of years in part (a). will the balance be double, more than double, or less than double the balance in pan (a)?

d. If you double the amount of the deposit in part (a), will the balance be double, more than double, or less than double the balance in part (a)?

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A B 1 rate (APR) value 2345 nper (Y) value pmt 0 pv (P) FV (A) value =FV(B1, B2, B3, B4) A B 1 rate (APR) value 2345 nper (Y) value pmt 0 pv (P) FV (A) value =FV(B1, B2, B3, B4)