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...

Write down the correct excel formula(s) to answer each of their
questions.
A) If the Company places $1 million into an investment account
earning 4% per annum, compounded quarterly and takes the legal
settlement payments and invests those in the same account,
will the account’s accumulated value in 5 years exceed $10
million?
B) The Company has agreed to settle a lawsuit for $11 million
with a full payment in 6 years. The litigant has asked to receive
the present...

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?

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.
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Gerald has taken out a loan of $100,000 today to start a
business. He has agreed to repay the loan on the following
terms:
• Repayments will be made on a monthly basis. The first
repayment will be made exactly one month from today.
• The repayments for the first 5 years will cover interest only
to help reduce the financial burden for Gerald's business at the
start.
• After the 5-year interest-only period, Gerald will make level
monthly payments...

Gerald has taken out a loan of $100,000 today to start a
business. He has agreed to repay the loan on the following
terms:
• Repayments will be made on a monthly basis. The first
repayment will be made exactly one month from today.
• The repayments for the first 5 years will cover interest
only to help reduce the financial burden for Gerald’s business at
the start.
• After the 5-year interest-only period, Gerald will make
level monthly payments...

Gerald has taken out a loan of $100,000 today to start a
business. He has agreed to repay the loan on the following
terms:
• Repayments will be made on a monthly basis. The first
repayment will be made exactly one month from today.
• The repayments for the first 5 years will cover interest only
to help reduce the financial burden for Gerald’s business at the
start.
• After the 5-year interest-only period, Gerald will make level
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*PLEASE ANSWER ALL QUESTIONS
Problem 1: A credit car company wants your business. If you use
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