Here you go with the solution:
In ques 3, PV is calculated : Amount*Discounting Factor (Rate of Return-6%)
Discounting Factor calculated like as follows:
=ROUND(1/1.06^1,5)
In ques 4, FV is calculated : Amount*Compounding Factor (Rate of Return-9.7%)
Cmpounding Factor calculated like as follows:
=ROUND(1.097^19,5)
3 | Year | Amount ($) | Rate of Return @6% |
Present Value Amount ($) |
1 | 5500 | 0.94340 | 5,188.70 | |
2 | 5500 | 0.89000 | 4,895.00 | |
3 | 5500 | 0.83962 | 4,617.91 | |
4 | 5500 | 0.79209 | 4,356.50 | |
5 | 5500 | 0.74726 | 4,109.93 | |
6 | 5500 | 0.70496 | 3,877.28 | |
7 | 5500 | 0.66506 | 3,657.83 | |
8 | 5500 | 0.62741 | 3,450.76 | |
9 | 5500 | 0.59190 | 3,255.45 | |
10 | 5500 | 0.55839 | 3,071.15 | |
11 | 5500 | 0.52679 | 2,897.35 | |
12 | 5500 | 0.49697 | 2,733.34 | |
13 | 5500 | 0.46884 | 2,578.62 | |
14 | 5500 | 0.44230 | 2,432.65 | |
15 | 5500 | 0.41727 | 2,294.99 | |
Total | 53,417.43 | |||
4 | Year | Amount ($) | Rate of Return @9.7% |
Future Value Amount ($) |
1 | 4000 | 5.80665 | 23,226.60 | |
2 | 4000 | 5.29321 | 21,172.84 | |
3 | 4000 | 4.82517 | 19,300.68 | |
4 | 4000 | 4.39851 | 17,594.04 | |
5 | 4000 | 4.00958 | 16,038.32 | |
6 | 4000 | 3.65505 | 14,620.20 | |
7 | 4000 | 3.33186 | 13,327.44 | |
8 | 4000 | 3.03724 | 12,148.96 | |
9 | 4000 | 2.76868 | 11,074.72 | |
10 | 4000 | 2.52387 | 10,095.48 | |
11 | 4000 | 2.30070 | 9,202.80 | |
12 | 4000 | 2.09726 | 8,389.04 | |
13 | 4000 | 1.91182 | 7,647.28 | |
14 | 4000 | 1.74277 | 6,971.08 | |
15 | 4000 | 1.58867 | 6,354.68 | |
16 | 4000 | 1.44819 | 5,792.76 | |
17 | 4000 | 1.32014 | 5,280.56 | |
18 | 4000 | 1.20341 | 4,813.64 | |
19 | 4000 | 1.09700 | 4,388.00 | |
20 | 4000 | 1.00000 | 4,000.00 | |
Total | 2,21,439.12 |
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