Assignment

profilenanoy200xh1d

Assignment:

Complete the problems using an Excel spreadsheet. Problem responses must contain all givens, equations, and the process in which the problem is solved.

 

  1. What is the amount of interest earned on $6,500 for seven years at 10% simple interest per year?

 

  1. You deposit $10,000 in a savings account that earns 8% simple interest per year. How many years will it take to double your balance? If, instead, you deposit the $10,000 in another savings account that earns 6% compounded yearly, how many years will it take to double your balance?

 

  1. Suppose you have the option of receiving either $5,000 at the end of five years or P dollars today. Currently, you have no need for the money, so you could deposit the P dollars into a bank account that pays 9% interest compounded annually. What value of P would make you indifferent in your choice between P dollars today and the promise of $5,000 at the end of five years?

 

  1. Which of the following alternatives would you choose, assuming an interest rate of 10% compounded annually?

 

    1. Receive $400 today.
    2. Receive $600 four years from now.
    3. Receive $800 eight years from now.

 

  1. State the amount accumulated by a present investment of $4,500 in four years at 7% compounded annually.

 

  1. State the present worth of the future payment of $9,250 six years from now at 9% compounded annually.

 

Formatting:

 

Text Size: 12-point size.

 

Margins: 1’’ on all sides.

Spelling/Grammar Checking: Remember to do your spelling and grammar checking before turning your assignments in. When doing the spelling/grammar checking keep in mind that some words such as mush and must, woods and words, or here and cow, will not be caught by either check. To correct these problems, you will need to proofread your work.

 

Page Numbers: Any homework that has more than one page needs to have page numbers on it. Please place your page numbers on the bottom of the page. In MS Excel, use the footer selection and place the page number in the bottom center or bottom right of the page.

 

Content:

 

Problem Number: List each problem’s number on the left, placing a blank cell above it.

 

State the Problem: Write the problem exactly as appears in the book immediately below the problem number. You will need to break long text up between cells so that you will stay with-in the printing boundaries of the page.

 

State the Given: Skip one cell and write the word “Given:” Follow that with what is known from the problem. If the problem has multiple parts, place the letter of each part before the “Given”.

 

State the Find: Skip one cell and write the word “Find:” Follow that with what the problem wants solved. If the problem has multiple parts, place each “Find” below each “Given”.

 

State the Formula: Skip one cell and write the formula that you will be using. Be sure to place it inside quotation marks so that excel does not think that it is an active formula.

 

State the Formula Values: In the next lower cell and write the formula that you will be using with the values placed into it. Be sure to place it inside quotation marks so that excel does not think that it is an active formula.

 

Solve the Problem: In the next lower cell and write the formula that you will be using with the values placed into it. Do not place it inside of quotation marks, as this is where you place the active formula.

Content Example:

 

On the following page is an example of the format and contents using problem number 2.1 from Homework #2 assignment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Problem 1

 

 

 

 

What is the amount of interest earned on $3,000 for five years at 9%

simple interest per year?

 

 

 

 

 

 

 

 

Given: P = $3,000, N = 5 years, and i = 9% per year.

 

 

 

 

 

 

Find: I

 

 

 

 

"=((iP)N)"

 

 

 

 

"=((9%*3000)*5)"

 

 

 

$1,350.00

 

 

 

 

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