This question is already answer, this question just support the question that I am having problem. Your two year old has come to you with concerns about her retirement. She has learned of the concept of compounding by binge watching the Suzi Orman Show. She would like you to build her an Excel model that demonstrates the impact of more frequent compounding. Demonstrate compounding to your child by calculating (with Excel functions of course) what the value of $100 at 2% would be in 5 years with annual, semi-annual, quarterly and monthly compounding.

Annual ($110.41) $110.41 Semi-Annual ($110.46) $110.46 Quarterly ($110.49) $110.49 Monthly ($110.51) $110.51

This is the Question: I need the formula in Excel to Figure out the answer:

Mildly impressed, your two year old takes a break to ponder compounding. After lunch, a nap and two episodes of Fancy Nancy, she returns to you with another question. She believes that because of more frequent compounding, the effective annual rate cannot be 2% for all the compounding options. Calculate the effective annual rate for each of the compounding options in Question 8. (round to three decimal places)

Annual

_______ Formula to get this answer 2.000%

Semi-Annual

_______ Formula to get this answer 2.010%

Quarterly

_______ Formula to get this answer 2.015%

Monthly

_______ Formula to get this answer 2.018%

Thank you!