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.

  1. Present Value of a Lump Sum: If you need $1,200 at the end of 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? Use the rates per period in your calculations.

Inputs

Nominal Rate

7.2000%

Cashflow per year

$1,200.00

Holding Period

4 years

Q5: Present Value Lump Sum

Compounding

Present Value

Annual

Semi-annual

Quarterly

Monthly

Daily

Continuous

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