Mathematics
Mathematics, 20.09.2021 01:00, desderievelasquez

It is the end of 2021. You plan to complete a Ph. D. in 5 years. Your favorite uncle has promised to help you with your school expenses by giving you the following amounts for Christmas: Year 2022 2023 2024 2025 2026 Cash flow 1,200 1,600 1,800 2,000 2,200 Your uncle is fairly wealthy and very reliable. You currently have $10,000 in a savings account paying an annual interest rate of 6%. Create an Excel spreadsheet showing the years and cash flows as in the table above, then add a row that shows the number of years from now and another row that shows the present value of each cash flow. What is the sum of present values?

Hint: do not hardcode the discount rate into your formulas. Instead, keep it in a separate cell and refer back to it. You'll be asked to change in discount rate in parts 4 to 7.

You also want to know how much each gift will be worth in 2026 if you save it. Add another row to your spreadsheet and calculate the value of each cash flow in 2026. What is the sum of all future values?

What is the present value of the sum of future values calculated in the previous part?

Now assume that the interest rate is 4%. What is the present value of all the gifts?

Still assume that the interest rate is 4%. What is the future value of all the gifts?

Now assume that the interest rate is 10%. What is the present value of all the gifts?

Still assume that the interest rate is 10%. What is the future value of all the gifts?

answer
Answers: 1

Other questions on the subject: Mathematics

image
Mathematics, 21.06.2019 20:30, Katyazamo
Asunflower was 20 1/2 inches tall. over the next 6 months, it grew to a height of 37 inches tall. what was the average yearly growth rate of the height of the plzzz write a proportion i will give you 100 points
Answers: 1
image
Mathematics, 21.06.2019 20:50, elha20
Samson is going shopping for sugar and butter to make three different kinds of cookies: lemon bars, peanut butter cookies, and sugar cookies. the recipe for lemon bars calls for 2 cups of flour, 2 cups of sugar, and 1 stick of butter. the peanut butter cookie recipe calls for 2 cups of flour, 4 cup of sugar and 2 stick of butter. the sugar cookie recipe calls for 1 cup of flour, 2 cups of sugar, and 2 sticks of butter. sampson has 13 cups of flour at home, and he buys 12 cups (6 pounds) of sugar and 10 sticks of butter. how many batches of each type of cookie can he make? samson can make batches of lemon bars, batches of peanut butter cookies, and batches of 09 cookies submit reset
Answers: 1
image
Mathematics, 21.06.2019 23:30, rainbowboi
What is the simplified form of square root of 400 to the 100th power ?
Answers: 1
image
Mathematics, 22.06.2019 01:10, charlzperru8234
Which has the greater energy, light of wavelength 519 nm or light with a frequency of 5.42 x 10^8 sec^-1?
Answers: 2
Do you know the correct answer?
It is the end of 2021. You plan to complete a Ph. D. in 5 years. Your favorite uncle has promised to...

Questions in other subjects: