Question: Solve this problem using Excel. Use the summery tables below to answer the question. Show your answers and the formulas you used. Present Value of

Solve this problem using Excel. Use the summery tables below to answer the question. Show your answers and the formulas you used.

  1. Present Value of an Annuity Due: If you wish to withdraw an annuity (at the beginning 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

Q7: Present Value Annuity Due

Compounding

Rate per Period

Present Value

Annual

Semi-annual

Quarterly

Monthly

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