Create a new What SUP Present Value Analysis a. Using the ch7-01 file to start your work,

Question:

Create a new What SUP Present Value Analysis
a. Using the ch7-01 file to start your work, modify that worksheet to do the following:
i. Calculate the annuity payment required at the end of each year for the next 4 years at 4 percent such that the value in 4 years is $95,000 and illustrate the annual value of that investment.
ii. Calculate the future value of an investment of $20,000 invested for 4 years at a rate of 3 percent and illustrate the annual value of that investment.
iii. Calculate the future value of an investment of $8,500 each year for 4 years at a rate of 3 percent and illustrate the annual value of that investment.
iv. Calculate the initial investment required to obtain a future value of $10,500, assuming a rate of 3 percent for 4 years and illustrate the annual value of that investment.

b. Save the file as ch7-01_student_name (replacing student_name with your name).
c. Print the resulting worksheet.

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,... Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...