Question: Question 5 -- Comparing Different Compounding Periods Answer all question parts below. Use blank spaces to perform any necessary calculations. CELL REFERENCE AND USE EXCEL


Question 5 -- Comparing Different Compounding Periods Answer all question parts below. Use blank spaces to perform any necessary calculations. CELL REFERENCE AND USE EXCEL FUNCTIONS APPROPRIATELY. Format appropriately. You just won $80,000 and have invested it in an account earning 4.5% compounded semi-annually. You dream of purchasing your dream car for $100,000. Will you be able to afford this car in 5 years (assuming this is your only source of funds to purchase this car)? Show your calculations below and provide a final decision in words. What if you had instead invested your winnings in an account with the same nominal rate but with daily compounding instead. Would you be able to afford this car in 3 years? Show your calculations below and provide a final decision in words. BONUS QUESTION M16 What if you had instead invested your winnings in an account with the same nominal rate but with continuous compounding Would you be able to afford this car in 5 years? Show your calculations below and provide a final decision in words. arks)
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