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Accounting 2 Pages

Present And Future Values

Question

Go to the text website at the following address:

http://www.wiley.com/WileyCDA/WileyTitle/productCd-0470481307.html

Under the heading Downloads, find the link for “Chapter 4.1: Discounted Cash Flow Exercises.”  Click the download link and open this Excel file on your computer.

Note the tabs in the file: Intro, Future Value, Present Value, FV of an Annuity, PV of an Annuity, Amortized Loans 1, and Uneven Cash Flows 1. Each of these tabs provides detailed information on how to solve time value of money problems and each also (near the bottom of the page) has practice problems for you to solve using Excel time value of money functions.

Solve every practice problem in the tabs. Then, create a well-organized Word document listing your final numerical answers for each of the practice problems. You do not need to show your work; only display your final numerical answers. However, be sure that your mentor, to whom you are submitting these answers, can easily figure out what tabs and questions your numbers are answering.  

Length: 1-2 pages.

Solution

Title: Present And Future Values
Length: 2 pages (550 Words)
Style: APA

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Present and Future Values

Required

Solve every practice problem in the tabs. Then, create a well-organized Word document listing your final numerical answers for each of the practice problems. You do not need to show your work; only display your final numerical answers.

Solution

  •  Future Value
  • The workings involve a $5 and $10 for account opening at Bank B and Bank C, respectively. These amounts have been deducted in the calculation of the future values for these accounts. Therefore, based on the future values from these accounts I would select to open a savings account with Bank C since I would have $887.19/= at the end of the 2 years (Besley & Brigham, 2014).
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