Practice Exam 1

Solve both of these practice problems

Find the interest earned on $5,750 deposited into a savings account for 3 1/2 years at an annual interest rate of 4 1/2% a. What formula should be used? b. What are you trying to find and what variable does it represent in the formula? c. Solve the problem showing all of your work (must show all steps!!) d. Interpet your answer using a complete sentence You may use the box below to upoload a picture of your written explanation or type it out in the box. Use the "mountain" button to add pictures.

MCQ: SHADE answer in MCQ sheet on page 1 1. Which is better, $1 NOW or $1 a year from now? a. Now b. 1 year later C. Same value 2. When borrowing money for a project, the lower the risk the higher the interest rate a. True b. False 3. Calculate the missing value: Interest ($) Principal($) 1,500 Rate Time (months) 2.5°% 7 months a) $21.88 b) $39.96 c) $33.25 d) 20.25 4. Calculate the missing value: Principal($) Rate Time (months) Interest($) 10.25 o 1l months 328.85 a) $5,000 b) $3,499.96 c) $4,533.25 d) None of these 25 ASUS f8D/点) prt sc deletr insert, f7 f10 f11 f12

uestion 1: Solve the following TVM problems using Excel formulas. You MUST use Excel formulas (FV or PV) to receive credit. ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? C. Suppose you invest $ 570 monthly. What is the future value of the investment in 29 29 years, if interest at + 5% is compounded monthly? 5 6 7 8 19 20 21 22 23 24 25 26 27 28 29 Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A 国 W X

5. You decide to invest $100 into a savings account with an interest rate of 2% annually in2015. The amount of money in your savings account in a given year can be modeled by the following function.   P(t)=100(10)^.009   a. Evaluate P(0) and explain what it means in this context.   b. Approximately how many years will it take for the amount of money in your bank account to reach $120?   c. What year will you have $120 in your savings account?

Questions: 1. Using simple interest computations, find the future value of $3,620 at 2 38%/2 38% 2. Now, using compound interest computations, find the future value of $3,620 at 2 38%/2 38% Time Value of Money Solver). Show what you put into the calculator for your work. 3. Now, using compound interest computations, find the future value of $3,620 at 2 38%/2 38% Time Value of Money Solver). Show what you put into the calculator for your work. 4. Explain why the future values are different in questions 1-3. Explain who would benefit from more frequent compounding. Who would be at a disadvantage from more frequent compounding.

akeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator=&inprogress%3false hapter 11 Lab Application 全 回 Sign ia еBook You have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the value of that investment account at the end of that period? (Click here to see present value and future value tables) Amounts of Value at the End Investment Rate Times of the Period $7,000 20% 16 years 612,094.91X $11,000 15% 9 years 184,644.26X $15,000 12% 5 years 95,292.71 X $36,000 10% 2 years 75,600.00 Feedback > Check My Work For each scenario, use the rate and time components to use the applicable time value of money table to determine the needed factor. Multiply the investment amount by the future value factor to determine the value of end of the period. 6:38 PM G O 4) ENG 13 68°F Sunny 10/26/2021 O P Type here to search hp %24 %24 %24

Interest Rate? Problem 2 In 4 years, you plan to buy a new car and will need a down payment. How much would you need to invest today in order to have $8,000 in 4 years? Assume interest rates are 4%. Which table will you use for the above calculation? Number of periods? Factor? hapter What is the amount of investment? Problom 3 value of money and Бопа X A P Q S Y

your assumption and write it on the submitted file. [example: sa interest rate or years are not mentioned. you assume any value, do your problem, write your assumptions/answer on work paper. Question 1 You have $2,000 to invest, the MARR would be at least what you need pay for borrowing $2000 True OFalse MacBook Pro F6 F4 FS F2 F3 %23 24 % 2 3 4 5

Need D and C please use IT-84 calculator  what is  N = I%= PV= PMT=FV= What are we solving for? Thank you

Question 1. Suppose that you invest P dollars at the beginning of every week. However, your crazy banker decides to compound interest at a rate r at the end of Week 5, Week 9, Week 12, Week 14, and Week 15. What is the value of the account at the end of Week 15? At the end of the Week 15, you need to spend $15, 000 on a bandersnatch. How much money must you invest weekly to ensure you have exactly $15, 000 after Week 15 if the weekly interest rate is 10%?

not use ai please

Can u also answer part 2

Questions D, E, F, G

Give typing answer with explanation and conclusion

QUESTION 1 Considering the following scenario. In years 0, 2, 4, 6, and 8, you deposit $750 in your savings account. The saving account earns 4.25% compounded anbually. What is the future value in year 10? 4,847.22 5,411.56 3,579.94 6,411.56

a1-3bii Use the present value and future value formulas to solve the following problems. Confirm your answers with your financial calculator. Show both methods of calculation in your answers. When performing your calculations, keep as many decimal places as you can for intermediate answers, but round your final answers to two decimal places.                                          You estimate that you will need $350,000 to buy a house some time in the future. If your bank account pays an annual interest rate of 3%, how much money must you deposit now to purchase the house in 10 years’ time?

please solve it as soon as possible

4.Q

4. Present value Finding a present value is the reverse of finding a future value. is the process of calculating the present value of a cash flow or a series of cash flows to be received in the future. Which of the following investments that pay will $10,500 in 13 years will have a lower price today? O The security that earns an interest rate of 21.75%. O The security that earns an interest rate of 14.50%. Eric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interest rate) of holding the security is 13.80%. Assuming that both investments have equal risk and Eric's investment time horizon is flexible, which of the following investment options will exhibit the lower price? O An investment that matures in three years An investment that matures in four years Which of the following is true about present value calculations? O Other things remaining equal, the present value of a future cash flow increases if the investment time period…

Solve e

PROBLEM (1-4) (A) If you want to have $250 in 5 years and you can earn an annual return of 7%, how much must you invest today? Be sure to use cell references and make sure that your answer appears as a positive value. (B) If you make a one-time deposit today of $800 you can earn 10% per year, how much would you have in your account after 15 years? Be sure to use cell references and remember that deposits from you are outflows. (C) If your investment of $1,254 declined to $435 in 6 years, what compounded annual rate of return would you have earned? Be sure to use cell references and to convert your answer to a percent rounded to two places after the decimal point. (D) If you can earn 5% per year, precisely how many years would it take for your investment of $450 to turn into $1,200? Be sure to use cell references and display your answer rounded to two places after the decimal point. TIME VALUE OF MONEY: LUMP SUMS PV FV r n (A) (B) (C) (D)

Problem #2: Consider an investment where the cash flows are: - $920.33 at time 1 = 0 (negative since this is your initial investment) S407 at time = 1 in years $222 at time = 2 in years $426 at time = 3 in years (a) Use Excel's "Solver" to find the internal rate of return (IRR) of this investment. Take a screen shot showing Solver open with your entries for the function clearly visible. Paste the screen shot into an application (like Paint), and save it as a (.png) file. Upload your screenshot below. (b) What is the value of IRR found by Solver?

2 - Note: You must show formulas and cell references when computing all values in the GREEN CELLS.

4.  Find the interest rate implied by the following combinations of present and future values: (Round your answer to the nearest whole value.)    Present Value Years Future Value Intrest rate A. $400 11 $684   B. $183 4 $249   C. $300 7 $300

Part 1 of 2 Points: 0 of 4 Save Annual cash flows from two competing investment opportunities are given. Each investment opportunity will require the same initial investment. E (Click the icon to view the competing investment opportunities.) (Click the icon to view the Present Value of $1 table.) E (Click the icon to view the Present Value of Annuity of $1 table.) Requirement 1. Assuming a 12% interest rate, which investment opportunity would you choose? Begin by computing the present value of each investment opportunity. (Assume that the annual cash flows occur at the end of each year. If using present value ta- use factor amounts rounded to three decimal places, X.XXX. Round intermediary computations and your final answer to the nearest whole dollar.) The present value of investment opportunity A is The present value of investment opportunity B is Data table Investment A Investment B ok Year 1 $ 10,000 $ 13,000 ok Year 2 13,000 13,000 Year 3 16,000 13,000 $ 39,000 $ 39,000 Total…