Question

Directions: For the following time value of money (TVM) calculations, be sure to show financial calculator inputs (PV, FV, PMT, I, N). Identify the component you are solving for with a "CPT-" and highlight it in yellow (10 points). Any problem that does NOT show this information will earn 0 points. Solve the problem and enter the response next to the "CPT.. Be sure to show the cash flow direction for all PVs, FVs, and PMTs (if a negative- sign is not shown, it will be assumed that the cash flow is an inflow) For example, if you deposit $400 into an account paying 4% interest compounded annually, how much will you have in the account after three years? PV=-400 * PMT=0 N-3*1-(n*m)-3 FV-CPT-449.95 *Be sure to use negatives appropriately to signifv cash flow direction. Negatives sianify cash outflows (e.g., a deposit into the bank) and non-negatives (i.e. positive numbers) represent cash inflows (e.g., money received from the bank). Also to establish a good habit, always think about entering the period rate (im) and number of compounding periods (n*m) for I and N. This way when you have compounding that is not ANNUALLY, you have accounted for the difference. Remember m=the number of compounding intervals per year; so with annual compounding Be sure to use at least five decimal places in your intermediate calculations and ONLY round your final response to two decimal places.

Answer 1

HomeInsertPage LayoutFormulas Data Review ViewFoxit FDF E AutoSum Wrap Text 1 Copy Or-스-==_ : i Merge & Center, 雫. % , 'al 8 Conditional Format Cell Formatting as Table Styles Paste B 1 프 Insert Delete Format S Sort &Find & Format Painter 2 cear, Clipboard Alignment Cells Editing AA12 AB AC AD AE AH 10000.00 payment ·448.15 PMT(0.08/12,12*5,25700-3598,0,0) present value future value number of years reqd rate annual rate 15025.00 5.00 0.02 RATE(4*5,0,-Y1,Y2,0,0 0.02 EFFECT(Y4,4) present value future value number of months 197000.00 554000.00 155.61 NPER(0.08/12,0,-Y7,Y8,0) 8% cmpd monthly ears 12.97 Y9/12 12 13 16000.00 12.00 0.14 15 future value -436331.98 FV(Y15,12,Y13,0,0 17 18 8 19 20 9 21 22 10) 56598.88 PMT(0.14,25,389000,0,0 present value 32398.08 PV(0.075,6,0,50000,0) 0.08 -4365.75 effective rate 14 scenario SheetiSheet2 Sheet3 Desktop2 13-02-2018