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 an

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 an Annuity Due: If you invest in an annuity (i.e., you spread a total annual $1,200 investment evenly out over each yearbeginning 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.

Inputs

Nominal Rate

7.2000%

Cashflow per year

$1,200.00

Holding Period

4 years

Q4: Future Value Annuity Due

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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