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?
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?
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?
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?
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?
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.