Required: Complete the assignment using the formulas embedded in

Microsoft Excel and/or a financial calculator. Include an Excel

document that shows your calculations. 1. Future Value. What is the

future value of a. $550 invested for 5 years at 15 percent

compounded annually? b. $650 invested for 15 years at 14 percent

compounded annually? 2. Present Value. What is the present value of

a. $453 to be received 8 years from now at a 14 percent discount

rate? b. $1200 to be received 7 years from now at a 12 percent

discount rate? 3. Future Value of an Annuity. What is the future

value of a. $1321 a year for 13 years at 13 percent compounded

annually? b. $867 a year for 10 years at 13 percent compounded

annually? 4. Present Value of an Annuity. What is the present value

of a. $487 a year for 5 years at a 9 percent discount rate? b. $798

a year for 13 years at a 11 percent discount rate? 5. Annuity. How

many years will it take for a payment of a. $590 to grow to 9090.91

at a compound rate of 14 percent? b. $900 to grow to future value

of 10,586.21 at a compound rate of 14 percent? 6. Mortgage. (Hint:

P/Y=12) What is the payoff on a 30 year, 7% original mortgage of a.

$550,552 with a payment of 3,744.50 with 12 years remaining? b.

$190788 with a payment of 1,143.87 with 15 years remaining? 7.

Stock. What is the required rate of return on a stock with a a.

$0.75 expected dividend and a 34 price with 7% growth? b. $1.25

expected dividend and a 15 price with 8% growth?

Attachments

4182043-A3-Part_1.docx