In this project, you will use a graphing calculator to compare savings plans. For instance, suppose you are depositing $1000 in a savings account and are given the following options: 4 • 6.2% annual interest rate, compounded annually 6.1% annual interest rate, compounded quarterly 6.0% annual interest rate, compounded continuously • In this project, you will use a graphing calculator to compare savings plans. For instance, suppose you are depositing $1000 in a savings account and are given the following options: 4 • 6.2% annual interest rate, compounded annually 6.1% annual interest rate, compounded quarterly 6.0% annual interest rate, compounded continuously •
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- 1. If you receive $176 each month for 12 months and the discount rate is 0.04, what is the future value? (show the process and can use financial calculator)What is the present worth of a future payment of $19,000 in year 7 if the interest rate is 10% per year using (a) the tabulated factor values in your book, (b) TVM functions on a financial calculator, and (c) built-in functions on a spreadsheet?Assume you deposit $1,000 in your savings account. Performance a sensitivity analysis on the relationship between future value at the end of year 10 and interest rate. Plot the relationship on a chart and label the graph clearly
- 1) What is the loanable funds market? 2) Calculate the following: You save $100 and want to see how much you will earn based on the following interest rates Interest Rate Value after 1 month -1% ? 0.5% ? 1% ? 2% ? 3) What supply factors affect the Loanable Funds market? 4) What demand factors affect the Loanable Funds market?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
- You are currently investing your money in a bank account which has a nominal annual rate of 7 percent, compounded monthly. How many years will it take for you to double your money? Identify the following variables to help solve problem: m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FVIn your own words, explain how compounding works. According to the rule of 72, if you deposit $100 in an account that pays 9% compound interest, how long will it take that initial deposit to reach $200? Use the matrix given below. For each type of investment, record this information: • Is the risk high, moderate, or low? • Is the return high, moderate, or low? • How does this type of investment work? Explain in one or two sentences.Consider each of the following deposit cash flow series. What will the final balance be (future equivalent value) after the final deposit? Assume the account earns 9% interest compounded annually *Use excel*
- Use the present value and future value tables to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? $fill in the blank 1 B. If you place $6,100 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? $fill in the blank 2 C. You invest $7,000 per year for 9 years at 12% interest, how much will you have at the end of 9 years? $fill in the blank 3 D. You win the lottery and can either receive $760,000 as a lump sum or $40,000 per year for 19 years. Assuming you can earn 8% interest, which do you recommend and why?You expect to receive two cash flows: $41,000 paid in 5 years and $61,500 paid in 10 years. You'll put the money into a savings account with an annual interest rate of 8%. What is the future value of the combined cash flows, in 15 years? Please Introduction and explanation without plagiarism please and use math tools plZUse the present value and future value tables to answer the following questions. A. If you would like to accumulate $2,600 over the next 5 years when the interest rate is 15%, how much do you need to deposit in the account? $fill in the blank 1 B. If you place $6,300 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? $fill in the blank 2 C. You invest $7,000 per year for 11 years at 12% interest, how much will you have at the end of 11 years? $fill in the blank 3 D. You win the lottery and can either receive $740,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why? Take the lump sum $740,000 because it is more money.