Question: Please show excel formulas/functions Compounding (20 points) Part A: You are looking to save $1000. You have four options: Bank A is offering a 13%


Please show excel formulas/functions
Compounding (20 points) Part A: You are looking to save $1000. You have four options: Bank A is offering a 13% stated annual interst rate, compounded twice a year. Bank B is offering a 11% stated annual interest rate compounded quarterly. Bank C is offering a 10.5% stated annual interest rate compounded daily (assume 365 days). And Bank D is offering a 11.5% stated annual interest rate compounded continuously. What will you have at the end of 5 years under each alternative? Part B: Suppose you had an investment grow from $1000 to $3735 over three years. What was your total growth rate? What was your discretely compounded annual rate of return? What was your continuously compounded annual return
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
