Question: please show the excel reference Problem #1: Suppose that you are planning to buy a boat in 22 years [to be entered into cell B2]
please show the excel reference

Problem #1: Suppose that you are planning to buy a boat in 22 years [to be entered into cell B2] for an amount of $100,000 [cell B1] at that time, and you earn an average annually compounding rate of return of 5% per year [to be entered into cell B3]. A B 1 Future value $100,000 2 Years 3 Annual rate 4 5 Present value 6 (a) How much money would you need to invest today as a lump sum to achieve your goal (cell B5)? There are no additional deposits or payments. Use the PV function. (b) What is the correct formula (using 16 characters or less) that should be placed in cell B5? Note: There are to be NO numbers in the function call (apart from a 0 if appropriate), only cell references, or negative cell references where appropriate. Additional Note: For some reason, in the PV function, the f.v. represents an amount that is being paid out, not received. So the present value of something being paid out is a negative number. The correct answer to this question is the use of the PV function that returns the correct positive value. Problem #1(a): Answer correct to 2 decimals Problem #1(b): Just Save Submit Problem #1 for Grading Problem #1 Attempt #1 Your Answer: 1(a) 1(b) Your Mark: 1(a) 1(b) Attempt #2 1(a) 1(b) 1(a) 1(b) Attempt #3 1(a) 1(b) 1(a) 1(b) Attempt #4 1(a) 1(b) 1(a) 1(b) Attempt #5 1(a) 1(b) 1(a) 1(b)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
