Question: In this part, calculate the present values. Use the Excel PV function to compute the present values. You are committed to owning a $180,000 Ferrari.

In this part, calculate the present values. Use the Excel PV function to compute the present values.

  1. You are committed to owning a $180,000 Ferrari. If you believe your mutual fund can achieve an annual return of 10 percent, and you want to buy the car in 12 years, how much must you invest today? (6 Points)

  1. Calculate the present values in the table below using the PV Excel function. (6 Points)

Future value

Years

Interest rate

Present value

$19,500

15

6%

?

$47,390

8

12%

?

$312,200

12

11%

?

$629,380

26

13%

?

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