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MAT143-1004B-44 Phase 4 IP2

# MAT143-1004B-44 Phase 4 IP2 - deposited each year into an...

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Name: Nikki Brackin Phase 4: Individual Project 2 Due Date: Assignment Points Assignment MAT143-1004B-44 : Business

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Part I 12/20/2010 200 Option 1: Compound Interest Amount invested, Principal Interest rate in %, r Number of compounding periods is quarterly, n Time in years, t Calculate i Formula to use: A = P(1 + i)^n Calculate the amount, A Option 2: Annuity Payment, PMT Interest rate in %, r Number of compounding periods is annually, n Time in years, t s Algebra As a financial planner a client comes to you for investment advice. After meeting with him and understanding his  needs, you offer him the following two investment options: Option 1 (refer to section on Mathematics of Finance in your text.): Invest \$23,000 in a savings account at 4.25%  interest compounded quarterly. Option 2 (refer to section on Mathematics of Finance in your text): Invest into an ordinary annuity where \$5,000 is

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Unformatted text preview: deposited each year into an account that earns 6.6% interest compounded annually. Set up the formula for compound interest for Option 1 and the formula for Future Value of an Annuity for Option 2 in an Excel spreadsheet to calculate the amount earned at the end of 5 years. Be sure to label all variables in your spreadsheet. Be sure to upload your spreadsheet for formula verification. Please note that you may have to add extra features. You must show your calculations using Excel, otherwise no credit will be given. Review your notes on how to do these calculations along with using the videos. Calculate i Formula to use: FV= PMT[ (1 + i)^(n) - 1]/i Calculate the Future Value, FV \$23,000.00 4.25% 4 5 0.01 24253.21 \$5,000.00 6.6% 1 5 0.07 5000...
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MAT143-1004B-44 Phase 4 IP2 - deposited each year into an...

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