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Assume you have decided to start investing $9.600 each year, starting at the end of this year How much will you have n each of the following situations? a. In 14 years at 6 percent? (Enter your answer as a positive number rounded to 2 decimal places.) b. In 30 years at 10 percent? (Enter your answer as a positive number rounded to 2 decimal places) C Prev 10 of 1 I
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Answer to Q#1 (first question in the list Part-(b) 10% 30 $9,600 $0 0 Part-(a) 696 Annual Interest rate, RATE Number of years of deposit, NPER Annual deposits, PMT Lumpsum deposit at the end, FV Annual compounding type, TYPE Future value at the end $9,600 $0 0 $201,744.63 0 if deposits made at the end of each year; 1 if deposits made at the beginning of each year $1,579,142.62 [Ref: NOTE] NOTE: For Part-(a): Future value at the end is calculated using EXCEL FUNCTION FV(rate,nper,pmt,pv,type) where rate-6%; npera14, pmt=-9600, pv:0; type-0; Here, value for pmt is negative as it denotes cash inflow; type 0 because deposits made at the end of each period only For Part-(b): Future value at the end is calculated using EXCEL FUNCTION FV(rate,nper,pmt,pv,type) where rate-10%; nper=30; pmts-9600, pv:0; type-0; Here, value for pmt is negative as it denotes cash inflow; type 0 because deposits made at the end of each period only Part-(a 6% Part-(b 2 Annual Interest rate, RATE 3 Number of years of deposit, NPER 30 Annual deposits, PMT $9,600 $9,600 5 Lumpsum deposit at the end, FV $0 00 if deposits made at the end of each year;1 if deposits made at the beginning of each year Anal compounding type, TYPE 7 Future value at the end FV(B2,B3, B4,B5,B6 C2,C3,-C4,C5,C6) [Ref: NOTE]

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