All of these problems are best done with Excel.
- Using Excel or your calculator, generate the table on page 299. I prefer that you use Excel, but if you cannot, you can use your calculator. Of course, if you use your calculator, there is no way I can tell if you really did the computations unless you generate one more significant digit in the answer. If you use your calculator you only need to generate entries for 5, 10 and 15%.
See Answer
- Generate graphs of the future value of one dollar for both simple and compound interest at 10% for 1 to 50 years. Compare the results. If possible, I would like to see this in Excel with a data point generated for each year from 1 to 50. The vertical axis will be the future value of $1, and the x axis will be n.
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- Generate a table for the future value of $1 at 3, 4, 5, 6, 7, 8, 9, and 10% for 5, 10, 15, 20, 25, and 30 years. Let columns be interest rates and the rows be years. See Answer
- How much money would you have to save monthly at 5, 6, 7, 8, 9, and 10% annual interest to accumulate $1 million in 20, 25, 30, and 35 years. This formula was not discussed in Tuesday’s class. You can look ahead to Section 6.5 or you can wait until Thursday to see how to do it. See Answer
- Generate two tables: one showing the monthly balance of a savings plan to accumulate $20,000 at 8% interest in three years and one showling the monthly balance on a loan of $20,000 at 8% for three years. What similarities and differences do you notice? See Answer
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