Question

help asap please

Solve various time value of money scenarios 。(Cick he ion to view the sonarios.) 悬 dakte icon to view the present value of Sitat le ) (Click the i ontoviewthhe present valueofannity of $1 table.) (Click the locon to view the future value of $1 table) (Click the loon to view the future value of annuity of $1 table) Scenario 1. Adam ust hit the packpot in Las Vegas and won S60,0001 if he invests it now at a 12% interest rate, how much wil it be worth int5 years? Rand your answer to the nearest whole doilar) Future value scenario 2. Roderick would lkoto have$2,000,000 saved by the time he meres in 40 years How much does he need to invest now at a 12% interest rate to And his retirement goal? (Round your answer to the nearest whole dollar) haring Present value Library Scenario 3. Assume that Rar aaconiales sa rgs of $1.5m ion by the time she retires l' she invests this save sat8%, how much money wil she be able to withdraw at the end of each year for 15 years? (Round your answer to the nearest whole dollar and enter as a positive amount) Amount able to withdraw$ scenario 4 Jessica plans to invest$2,500 at the end of each year fr thn next eight years. Assumn g a 12% interest rate, what wil her mestrent be worth egit years Study Modules from now? (Round your answer to the nearest whole dolar.) nication Tools Future value s Enter any number in the edit fields and then continue to the next question

Answer 1

Solution 1) Calculation of the Future value of $60,000 after 15 years if invested at 12% Interest Rate

Following are the steps to be followed on Microsoft Excel to calculate the Interest payment:

Step 1: Click on "FORMULAS" tab at the top of Microsoft Excel
Step 2: Select the option "Financial"
Step 3: Under "Financial" select the option "FV"
Step 4: Insert Rate = 0.12 Nper = 15 PV = -60000

FV = $328,413.95

Therefore, the Future value is $328,414

Solution 2) Calculation of the amount to be invested to have $2,000,000 at the time of retirement.

Following are the steps to be followed on Microsoft Excel to calculate the Interest payment:

Step 1: Click on "FORMULAS" tab at the top of Microsoft Excel
Step 2: Select the option "Financial"
Step 3: Under "Financial" select the option "PMT"
Step 4: Insert Rate = 0.12 Nper = 40 FV = -2000000

PMT = $242,607.25

Roderick need to invest $242,607 every year to achieve his retirement goal.

Solution 3) Calculation of the amount to be withdrawn at the end of each year for 15 years

Following are the steps to be followed on Microsoft Excel to calculate the Interest payment:

Step 1: Click on "FORMULAS" tab at the top of Microsoft Excel
Step 2: Select the option "Financial"
Step 3: Under "Financial" select the option "PMT"
Step 4: Insert Rate = 0.08 Nper = 15 PV = -1500000

PMT = $175,244.32

Therefore, Ramona can withdraw $175,244 every year for the next 15 years.

Solution 4) Calculation of the investment amount after 8 years

Following are the steps to be followed on Microsoft Excel to calculate the Interest payment:

Step 1: Click on "FORMULAS" tab at the top of Microsoft Excel
Step 2: Select the option "Financial"
Step 3: Under "Financial" select the option "FV"
Step 4: Insert Rate = 0.12 Nper = 8 PMT = -2500

FV = $30,749.23

Jessica’s investment will be worth $30,749 after 8 years

Solution 5) Calculation of amount to be invested to withdraw $14,000 every year for next 10 years

Following are the steps to be followed on Microsoft Excel to calculate the Interest payment:

Step 1: Click on "FORMULAS" tab at the top of Microsoft Excel
Step 2: Select the option "Financial"
Step 3: Under "Financial" select the option "PV"
Step 4: Insert Rate = 0.12 Nper = 10 PMT = -14000

PV = $79,103.12

Amanda has to invest $79,103 to withdraw $14,000 every year for next 10 years.