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PV & FV Assignment 2 -- Spreadsheet -- W2012

PV & FV Assignment 2 -- Spreadsheet -- W2012 - CM...

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CM 426 Present Value and Future Value Spreadsheet Problems Winter 2012 –Assignment 2 Using the spreadsheet model created in class today (the savings account model), solve the following problems. Hand in your spreadsheet showing the answers. When you are asked to solve for the interest rate, please carry interest rate answers to four significant digits after the decimal . Leave all other dollar figures in a format with two significant digits after the decimal (for example 2,452.00 or $2,452.00). 1. You decide to deposit $2,500 into a savings account that yields 2.5 percent annually. Assuming no further deposits or withdrawals are made, how much will you be able to withdraw at the end of 5 years? 2. What if you were to deposit $2,200 into the same account with the same annual interest rate (2.5 percent), but the lender promises quarterly compounding? How much would be available at the end of 1 1/2 years? 3. Given the same information from question 2 above ($2,200 and 2.5 percent APR),
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