Question: Solve each of the following problems using Excel. Use the summary table below. show the formula as well as the answer. Future Value of a

Solve each of the following problems using Excel. Use the summary table below. show the formula as well as the answer.

  1. Future Value of a Regular Annuity: If you invest in an annuity (i.e., you spread a total annual $1,200 investment evenly out over each yearend of period payments), what would your investment be worth under the various compounding periods for a 4-year holding period and an 7.2% nominal rate of return? Breakdown each future value into its component parts.

Q3: Future Value Regular Annuity

Compounding

Rate per Period

Future Value

Cashflow per period

Return of Principal

Total

Interest

Regular

Interest

Interest on Interest

Annual

Semi-annual

Quarterly

Monthly

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