Question: Solve the following problems using Excel . use the summery tables below. Show the answers as well as the the formulas. Present Value of a
Solve the following problems using Excel. use the summery tables below. Show the answers as well as the the formulas.
- Present Value of a Regular Annuity: If you wish to withdraw an annuity (at the end of each period) totaling $1,200 per year over the next 4 years and you can invest at the 7.2% nominal interest rate, what would you need to invest today under the various compounding periods?
| Inputs | |
| Nominal Rate | 7.2000% |
| Cashflow per year | $1,200.00 |
| Holding Period | 4 years |
Q6: Present Value Regular Annuity
| Compounding | Rate per Period | Present Value
|
| Annual |
|
|
| Semi-annual |
|
|
| Quarterly |
|
|
| Monthly |
|
|
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
Study Help