Question

10 points Save Answer QUESTION 3 Suppose you buy a certificate of deposit CD for414 today, and receive 2 6 worth when it matures? Round to the nearest penny 2% interest per year for 17 years what will the CD be 10 points Saved QUESTION 4

so lost please help

Answer 1

Answer to Q#3: Annual Interest rate, RATE # of years of deposit, NPER Annual deposits, PMT Initial lumpsum deposit,PV Interest compounding type, TYPE Future value at the end of 1.7 years 2.62% 1.7 $0 $4,145 0 -0 if compounds at the end of each period; 1 if compounds at the beginning of each period $4,331.31 [Ref: NOTE-1] NOTE-1 Future value at the end of 1.7 years is calculated using EXCEL FUNCTION FV(rate,nper,pmt,pv,type) where rate-2.62%; nper=1.7; pmt=0; pv-4145 type -0. Here, value for pv is negative as it denotes cash inflows; type 0 because interest accrues at the end of each year only 1 Annual Interest rate, RATE 2 #of years of deposit, NPER 3 2.62% Annual deposits, PMT 4 Initial lumpsum deposit,PV 5 Interest compounding type, TYPE 6 Future value at the end of 1.7 yrsFV(B1,B2,-B3,-B4,B5) [Ref: NOTE-1] S0 $4,145 0 0 if compounds at the end of each period; 1 if compounds at the beginning of each period

Answer to Q#5: Annual Interest Rate Annual deposits, PMT Initial deposit, PV Target Maturity amount, FV Interest compouding type, TYPE # of Years to reach the target 7.12% $0 $4,262 $5,650 0 = 0 if compounds at the end of each period: 1 if compounds at the beginning of each period 4.10 [Ref: NOTE-2] NOTE-2 # of Years to reach the target is calculated using EXCEL FUNCTION NPER(rate,pmt,pv.fv,type) where rate-7.12%; pmt-0; pv-4262 fv =-5650; type:0; Here, value for pv is positive as it denotes cash outflow; fv is negative as it denotes cash inflow; type-0 as deposits made at the end of each year only 1 Annual Interest Rate 2 Annual deposits, PMT 3 Initial deposit, PV 4 Target Maturity amount, FV 5 Interest compouding type, TYPE 6 # of Years to reach the target 7.12% S0 $4,262 $5,650 0 0 if compounds at the end of each period; 1 if compounds at the beginning of each period :NPERIBİ,B2,03,-B4,B5) [Ref: NOTE-2]