Assignment Steps using the Microsoft template that is attached.
Resources: Microsoft® Office® 2013, Time Value of Money Calculations Template
Calculate the following time value of money problems using Microsoft® Excel®:
- If we place $8,592.00 in a savings account paying 6.5 percent interest compounded annually, how much will our account accrue to in 9.5 years?
- What is the present value of $992 to be received in 12.5 years from today if our discount rate is 3.5 percent?
- If you bought a stock for $40 dollars and could sell it fifteen years later for three times what you originally paid. What was your return on owning this stock?
- Suppose you bought a house for $3,250,000 to make it a nursing home in the future. But you have not committed to the project and will decide in 8 years whether to go forward with it or sell off the house. If real estate values increase annually at 1.25%, how much can you expect to sell the house for in 8 years if you choose not to proceed with the nursing home project?
- If your daughter wants to earn $245,000 within the next twenty-three years and the salaries grow at 4.5% per year. What salary should she start to reach her goal?