Question: The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do




The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Enter your answers as positive values. f. Find the PV of an ordinary annuity that pays $1,000 each of the next 5 years if the interest rate is 12%. Then find the FV of that annuity. Round your answers to the nearest cent. PV of ordinary annuity: \$ FV of ordinary annuity: $ g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent. PV of annuity due: $ FV of annuity due: $ h. What will the FV and the PV for parts a and c be if the interest rate is 10% with semiannual compounding rather than 10% with annual compounding? Round your answers to the nearest cent. FV with semiannual compounding: \$ PV with semiannual compounding: \$ i. Find the annual payments for an ordinary annuity and an annuity due for 10 years with a PV of $1,000 and an interest rate of 9%. Round your answers to the nearest cent. Annual payment for ordinary annuity: $ Annual payment for annuity due: $ j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 9%. Round your answers to the nearest cent. PV of investment: $ FV of investment: $ 2. If the TVM is the only consideration, what nominal rate will cause all of the banks to provide the same effective annual rate as Bank A? Round your answers to two decimal places. 3. Suppose you don't have the $6,000 but need it at the end of 1 year. You plan to make a series of deposits - annually for A, semiannually for B, quarterly for C, monthly for D, and daily for E - with payments beginning today. How large must the payments be to each bank? Round your answers to the nearest cent
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
