Question

Please provide a real-life example of what you learned. It can be a present value, future value, number of periods, interest rate (growth rate), or payment problem. You need to state the problem and then solve the problem. The problem has to come from our daily life as a student

Answer #1

Real - time example of Present value with number of periods and interest rate :

When we have won a Dance competition and the winning amount of the competition has an option of (a) An amount of $150000 today or (b) An amount of $30000 every year for 6 years.

We have to calculate the present value of both the options and check out which option is having maximum present worth to the future value.

The present market interest rate is 10%, which is taken as the discount rate.

The present value of 'option a' is $150000 * PVIF (10% , 1) = $150000 * 1 = $150000

The present value of 'option b' is = $30000 * PVIFA(10% , 6) = $30000 * 4.3553 = $130659

So, the present value of the option a is better than the present value of option b, so the (a) An amount of $150000 today, is opted to receive the winning amount of the competition.

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Please provide a real-life example of what you learned. It can
be a present value, future value, number of periods, interest rate
(growth rate), or payment problem. You need to state the problem
and then solve the problem. The problem has to come from our daily
life as a student

Present Values:
Please provide the calculations in MS Excel for the present
value of an $7,000 goal in 7 years at 7% discounted on an annual,
semi-annual, quarterly, monthly, and daily basis to the nearest
penny.
Future Values:
Please provide the calculations in MS Excel for a future value
of an $7,000 investment today in 7 years at 7% compounded on an
annual, semi-annual, quarterly, monthly, and daily basis to the
nearest penny.
Present Value of an Annuity:
Please provide...

1) Please explain what is present value, and come up with one
example of the present value application in real life.
2) What happens to present value when you increase the discount
rate?
3) Please contrast compounding and discounting.

. Provide the structure of the Excel commands
to calculate pv(present value), fv(future value), rate(interest
rate), pmt(payment), nper(number of periods).

Provide a (real life) example of exploitation or manipulation in
the medical context. You can use an article from a newspaper or
other news-media, and make sure to append the link.Explain in 3-4
sentences.

What is an annuity? Can you provide some examples of real-life
annuities?

Why does money have a time value? Can you provide at least one
real-life scenario in which you can apply the concept of time value
of money?

a) Provide a real life example scenario for a paired-samples
t-test that includes sample data for N = 4 in each
condition. Do not only present the numbers; you need a reasonable
example of something that could be tested with a paired-samples
t-test.
b) Explain why your example is appropriate for a paired-samples
t-test.
c) Conduct the paired-samples t-test (two-tailed test
with an alpha of .05), showing your work for each step.

Please use Excel
to answer the following TVM questions. You can use this spreadsheet
to set up your calculations if you so desire. Unless indicated
otherwise, assume that all of the problems are ordinary annuities
(payment made at the end of the
period).
Part 4 I need $1,000,000 in 20 years if I am going to retire
(Fat Chance!!) I currently have $100,000 saved for my retirement (I
wish!!). A slick Wallstreet investment expert with the last name of
Madoff...

Please use Excel
to answer the following TVM questions. You can use this spreadsheet
to set up your calculations if you so desire. Unless indicated
otherwise, assume that all of the problems are ordinary annuities
(payment made at the end of the
period).
Part 3
I am going to
buy a car. I will finance the whole purchase (no down payment) with
a new car loan that has a 6-year term. My monthly payments will be
$392/mth and the annual...

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