FIN419 Week 2 Time Value of Money Calculations Paper Purpose of Assignment The purpose of this assignment is to allow the students to understand and pract

FIN419 Week 2 Time Value of Money Calculations Paper Purpose of Assignment

The purpose of this assignment is to allow the students to understand and practice the measurement of present value, future value, and interest rate using Microsoft® Excel®. See attachments.

Assignment Steps

Resources: Microsoft® Office® 2013 Accessibility Tutorials, Microsoft® Excel®, Time Value of Money Calculations Template

Calculate the following time value of money problems using Microsoft® Excel®:

If we place $8,592.00 in a savings account paying 7.5 percent interest compounded annually, how much will our account accrue to in 9.5 years?
What is the present value of $992 to be received in 13.5 years from today if our discount rate is 3.5 percent?
If you bought a stock for $45 dollars and could sell it fifteen years later for three times what you originally paid. What was your return on owning this stock?
Suppose you bought a house for $3,250,000 to make it a nursing home in the future. But you have not committed to the project and will decide in nine years whether to go forward with it or sell off the house. If real estate values increase annually at 1.5%, how much can you expect to sell the house for in nine years if you choose not to proceed with the nursing home project?
If your daughter wants to earn $215,000 within the next twenty-three years and the salaries grow at 4.45% per year. What salary should she start to reach her goal Individual Assignment: Time Value of Money Calculations
Purpose of Assignment
The purpose of this assignment is to allow the students to understand and practice the measurement of present
value, future value, and interest rate using Microsoft® Office®.
Resources Required
Microsoft® Office® 2013 Accessibility Tutorials, Microsoft® Excel®
Grading Guide
Content
The student calculated the time value of
money problems using Microsoft® Excel®:
The student answered the following questions
to complete the assignment:
1. If we place $8,592.00 in a savings
account paying 7.5 percent interest
compounded annually, how much will
our account accrue to in 9.5 years?
2. What is the present value of $992 to
be received in 13.5 years from today
if our discount rate is 3.5 percent?
3. If you bought a stock for $45 dollars
and could sell it fifteen years later for
three times what you originally paid.
What was your return on owning this
stock?
4. Suppose you bought a house for
$3,250,000 to make it a nursing home
in the future. But you have not
committed to the project and will
decide in nine years whether to go
forward with it or sell off the house. If
real estate values increase annually
at 1.5%, how much can you expect to
sell the house for in nine years if it
chooses not to proceed with the
nursing home project?
Met
Partially
Met
Not Met
Comments:
Time Value of Money Calculations
Grading Guide
FIN/419 Version 6
Content
Met
Partially
Met
Not Met
Total
Available
Total
Earned
5
#/5
Partially
Met
Not Met
Total
Available
Total
Earned
3
#/3
8
#/8
Comments:
5. If your daughter wants to earn
$215,000 within the next twenty-three
years and the salaries grow at 4.45%
per year. What salary should she
start to reach her goal?
Writing Guidelines
Met
The paper—including tables and graphs,
headings, title page, and reference page—is
consistent with APA formatting guidelines and
meets course-level requirements.
Intellectual property is recognized with in-text
citations and a reference page.
Paragraph and sentence transitions are
present, logical, and maintain the flow
throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed
including spelling and punctuation.
Assignment Total
Additional comments:
#
Comments:
2
Instructions
1. You have five problems – one on each tab of this Excel file.
2. Please show your work in the cells. Use Excel formulas instead of writing the values/answers directly in the cell.
The instructor will then know where you made a mistake and provide you valuable feedback and partial credit (if
3. It is recommended to watch the assigned videos in week # 2.
Total Points: 8
e feedback and partial credit (if appropriate).
If we place $8,592.00 in a savings account paying 7.5 percent interest compounded annually, how much will our acco
FV = PV × (1 + i)n
Present Value (PV)
Interest Rate (i)
Number of years (n)
Answer-
8592
0.075
9.5
how much will our account accrue to in 9.5 years?
What is the present value of $992 to be received in 13.5 years from today if our discount rate is 3.5 percent?
Future Value (FV)
Interest Rate (i)
Number of years (n)
Answer-
992
0.035
13.5
is 3.5 percent?
If you bought a stock for $45 dollars and could sell it fifteen years later for three times what you originally paid. Wha
Future Value (FV)
Present Value (PV)
Number of years (n)
Answer-
135
45
15
ou originally paid. What was your return on owning this stock?
Suppose you bought a house for $3,250,000 to make it a nursing home in the future. But you have not committed to t
If real estate values increase annually at 1.5%, how much can you expect to sell the house for in nine years if it choos
FV = PV × (1 + i)n
Present Value (PV)
Interest Rate (i)
Number of years (n)
Answer-
3250000
0.015
9
have not committed to the project and will decide in nine years whether to go forward with it or sell off the house.
ell off the house.
If your daughter wants to earn $215,000 within the next twenty-three years and the salaries grow at 4.45% per year. W
Future Value (FV)
Interest Rate (i)
Number of years (n)
Answer-
215000
0.0445
23
ow at 4.45% per year. What salary should she start to reach her goal?

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