Group Project 1 - Finance 221 Time Value of Money Excel...

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Finance 221 Time Value of Money Excel Project Compass Submission Due by 10 PM, Sunday, Feb. 7 Please use Excel financial functions or algebraic time value of money equations to answer these questions in your spreadsheet. Please type the names of everyone in your group along with your TA’s name and discussion section at the top of the first page of your workbook. Part 1: In the future. Construct a table and a graph showing the relationship between interest rates, time, and future value by showing how $2000 would grow each successive year over a 20 year period at different interest rates. Use $2000 for your present value and calculate the future value of this $ 2000 each year over the 20 year period at 0%, 3%, 6%, 9%, 12%, 15%, 18%, and 21% compounded annually. Future Value should be the y-axis for your graph and years (or time) should be your x-axis and you should end up with a line for each interest rate on your graph. Please insert your graph (chart) under your table of future values. Part 2: Today’s Value Construct a table and a graph showing the relationship between interest rates, time, and present value by showing how $2,000 pushed a year further into the future over a 20 year period would be discounted at different interest rates. Use $2,000 for your future value and calculate the present value of this $2,000 each year over the 20 year period at 0%, 3%, 6%, 9%, 12%, 15%, 18%, and 21% compounded annually. Present Value should be the y-axis for your graph and years (or time) should be your x-axis and you should end up with a line for each interest rate on your graph. Please insert your graph (chart) under your table of present values. Part 3: Financing Retirement Prof. Business has a self-managed retirement plan through her University and would like to retire in 20 years and wonders if her current and future planned savings will provide adequate future retirement income. Here’s her information and goals.
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Prof. Business wants a 25-year retirement annuity that begins 20 years from today with
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Group Project 1 - Finance 221 Time Value of Money Excel...

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