Question

I need the EXCEL formula for the following questions, please.

- What is the formula to calculate how much a savings account would be worth if the initial balance is $1,000 with monthly deposits of $75 for 10 years at 4.3% annual interest compounded monthly? What is the formula result?
- You want a savings account to grow from $1,000 to $5,000 within two years. Assume the bank provides a 3.2% annual interest rate compounded monthly. What is the formula to calculate how much you must deposit each month to meet your savings goal? What is the formula result?
- A business takes out a loan for $250,000 at 4.8% interest compounded monthly. If the business can afford to make monthly payments of only $1,500 on the loan, what is the formula to calculate the number of months required to repay the loan completely? What is the formula result?
- Redo your calculations from question #3 to assume that the business can afford only a $1,000 payment. What is the revised formula and resulting value?
- A business takes out a 10-year loan for $250,000 at 5.3% interest compounded monthly. What is the formula to calculate the monthly payment and what is the resulting value?

Answer #1

1.

PV = $1,000

PMT = $75

Nper = 10 * 12 = 120

Rate = 4.3% / 12

Future value can be calculated by using the following excel
formula:

=FV(rate,nper,pmt,pv)

=FV(4.3%/12,120,-75,-1000)

= $12,756.28

Savings account would be worth = $12,756.28

2.

PV = $1,000

FV = $5,000

Nper = 2 * 12 = 24

Rate = 3.2% / 12

Monthly deposit can be calculated by using the following excel
formula:

=PMT(rate,nper,pv,fv)

=PMT(3.2%/12,24,1000,-5000)

= $158.95

Monthly deposit = $158.95

Note: Post the rest of the questions separately.

I need the answer to question number 7. It is based on Question
number 5.
5. A business takes out a 10-year loan for $250,000 at 5.3%
interest compounded monthly. What is the formula to calculate the
monthly payment and what is the resulting value?
Answer is: $2688.69
I need the following below to be answered based on what
is above:
7. For the loan conditions in question 5, calculate the
total cost of the loan in terms of the...

PART 2 - HOMEWORK 3 - Time Value of Money (30
pts)
Please use Excel
to answer the following questions. Print an Excel spreadsheet that
presents your answers to these TVM questions and also print the
formula sheet that shows how you calculated your
answers.
1
Calculate
the present value of 120 monthly payments of $300 at an annual
rate of 8%.
The payments are made at the end of each month.
2
You are
financing a new car with...

2. You want a savings account to grow from $1,000 to $5,000
within two years. Assume the bank provides a 3.2% annual interest
rate compounded monthly. What is the math formula to calculate how
much you must deposit each month to meet your savings goal?

You want to buy a $203,000 home. You plan to pay 15% as a down
payment, and take out a 30 year loan at 4.3% annual interest
compounded monthly for the rest.
a) How much is the loan amount going to be?
$
b) What will your monthly payments be?
$
c) How much total interest do you pay?
$
d) Suppose you want to pay off the loan in 15 years rather than 30.
What will your monthly payment...

1a. Of the choice listed below, with all else equal,
which choice would be the most beneficial in your section of a
savings account that would earn the most interest over
time?
(a) An account that is compounded yearly at 5.7% annual
interest.
(b) An account that is compounded quarterly at 3.05% annual
interest.
(c) An account that is compounded yearly at 3.4% annual
interest.
(d) An account that is compounded monthly at 3.5% annual
interest.
1b. Second, The Smith...

1. If $1,000 is deposited at the end of each month and earns 9%
compounded monthly, will it take more than 42 months or less than
42 months for the total value of the deposits to reach a value of
$50,000?
2. What is the approximate annual rate of interest will result
in an investment doubling in value in eight years?
3. A $15,000 loan requires payments at the end of each month for
five years. If the interest rate...

You found your dream home! The down
payment is $27,000. However, you still need 40% of the down payment
plus required improvements will cost another 18% (First: what total
% of the down payment do you need? _____). You borrow the money
from your Savings & Loan, but you must pay it back within 10
years at an interest rate of 14%.
1) Calculate the amount you need to
borrow your Savings & Loan.
Using this amount as your principal...

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...

4. Calculate the compound amount. Use the compound amount
formula and a calculator. (Round your answer to two decimal
places.)
P = $9700, r = 4% compounded daily, t
= 4 years
5.Calculate the present value. (Round your answer to two decimal
places.)
A = $47,000, r = 7.5% compounded annually,
t = 39 years
6. Calculate the present value. (Round your answer to two
decimal places.)
A = $30,000, r = 6% compounded monthly,
t = 3 years
7....

Required information
[The following information applies to the questions
displayed below.]
NOTE: Throughout this lab, every time a screenshot is
requested, use your computer's screenshot tool, and paste each
screenshot to the same Word document. Label each screenshot in
accordance to what is noted in the lab. This document with all of
the screenshots included should be uploaded through Connect as a
Word or PDF document when you have reached the final step of the
lab.
In this lab, you...

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