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    Components in Calculating the Time Value of Money

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    All answers should be in a single Excel file.
    Show the step by step calculations how it was done and explained thoroughly by using excel:

    1 If you deposit $15,000 today and earn 8% annual interest, how much will you have in 9 years?
    Answer: $29,985.07

    2 Tiffany will receive a graduation gift of $10,000 from her parents in 3 years. If the discount rate
    is 7%, what is this gift worth today?
    Answer: $8,162.98

    3 What is the present value of a 20-year ordinary annuity of $30,000 using a 6% discount rate?
    Answer: $344,097.64

    4 You deposit $5,000 in an account that pays 8% interest per annum. How long will it take to double your money?
    Answer: 9 years

    5 The Johnsons have $60,000 to use as a down-payment on a house, and they want to borrow $240,000
    from the bank. The current mortgage interest rate is 5%. If they make equal monthly payments for 30 years,
    how much will the monthly payment be?
    Answer: $1,288.37

    6 Tim paid $250 per month into his 401K retirement plan. After 30 years, he had accumulated $500,000. What
    average annual rate of interest had he earned over the 30 years?
    Answer: 9.42%

    7 Charlotte's firm had sales of $525,000 in the year 2001. By 2012, sales had increased to $1,200,000. What was
    the average annual rate of increase?
    Answer: 7.80%

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    Solution Summary

    The solution explains how to use Excel to calculate each component involved in the time value of money, for example, discount rate, period, present value, future value, etc.
    7 questions; attached as Excel.