Part 5. Compounding Problems oblems to Test Your Skills: A Calculate the value of $100 invested at various interest rates and compounding periods. 1. You invest $100 in a bank for one year at 6% 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 4% interest. 4. You invest $100 in a bank for one year at 10% compounded quarterly. Solutions Inputs: PV 100 r various enter from prob tvarious FV|???? Formula: FVt=PV *(1+r)t Enter formula in this cell 1. FV = 100*(1+.06) Enter: =1186*(1+1187) Enter formula in this cell 2. FV = 100*(1+.05) 5 Enter: =1186*(1+1187) 5 Answer: 127.63 Enter formula in this cell 3. FV = 100*(1+.04) 20 Enter formula in this cell 4. FV = 100(1+.1/4) 4 Answer: 110.38