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Assignment 6 TVM-1

The document provides 6 finance and investment problems to solve using Excel including: calculating future and present values of deposits with different interest rates compounded monthly and semiannually over 6-10 years, determining the interest rate and time needed for an amount to double, and calculating an implied annual interest rate based on future values. The problems are to be solved in an Excel file and submitted.

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56 views1 page

Assignment 6 TVM-1

The document provides 6 finance and investment problems to solve using Excel including: calculating future and present values of deposits with different interest rates compounded monthly and semiannually over 6-10 years, determining the interest rate and time needed for an amount to double, and calculating an implied annual interest rate based on future values. The problems are to be solved in an Excel file and submitted.

Uploaded by

omin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Solve the problems by using Excel and submit the Excel file.

1. What will a deposit of $4,500 at 10% compounded semiannually be worth if left in the
bank for six years?

2. What will a deposit of $4,500 at 12% compounded monthly be worth at the end of 10
years?

3. You have $10,000 to invest. Assuming annual compounding, how long will it take for the
$10,000 to double if it is invested at an annual interest rate of 14 percent?

4. What is the present value of $800 to be received at the end of 8 years, assuming an
annual interest rate of 8 percent?

5. A life insurance company has offered you a new "cash grower" policy that will be fully
paid up when you turn 45. At that time, it will have a cash surrender value of $18,000.
When you turn 65, the policy will have a cash surrender value of $37,728. What annual rate
of interest is the insurance company promising you on your investment?

6. If you triple your money in 10 years, what interest rate did you earn?

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