Week Two Financial Exercises Part 1 Complete the following problems using either the financial functions in Excel or the Present Value and Future Value formulas as noted below: PV = FV * 1 / (1+i)^n FV = PV * (1+i)^n (1) If you wish to have $60,000 in 8 years, how much do you need to deposit in the bank today if the account pays an interest rate of 9%? Answer: (2) What will $110,000 grow to be in 9 years if it is invested today at 11%? Answer: (3) You would like to have $200,000 in a college fund in 15 years. How much do you need today if you expect to earn 12% while you are investing to pay for your childs college? Answer: (4) You have been offered $3,000 in 4 years for providing $2,000 today into a business venture with a friend. If interest rates are 10%, is this a good investment for you? Answer: (5) What will $82,000 grow to be in 11 years if it is invested today at 8% and the interest rate is compounded monthly? Answer: (6) How many years will it take for $136,000 to grow to $468,000 if it is invested in an account with an annual interest rate of 8% Answer: (7) At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years? Answer: