Question: please solve using Excel and explain thank you 2) You are planning to send your daughter to college in 20 years. You estimate that you
2) You are planning to send your daughter to college in 20 years. You estimate that you will need $100,000 at that time to pay for tuition, room, and board. How much would you need to invest today as a lump sum to achieve your goal 20 years from now if you can earn a rate of return of 10% per year? Use Excel's =PV(RATE,NPER,PMT, [FV] [TYPE]) function. RATE is 10%, NPER is 20 , PMT is $0,FV is $100,000, and TYPE is 0 since payments are made at the end of the period. If the [type] argument is omitted, it takes on the default value of 0 . We use FV as a positive value to represent a cash inflow that results from the return of the investment. In that case, PV will be negative to represent a cash outflow from money being invested
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