MATH 147 EXCEL HW #3

Preliminary:
At this point, you should be very comfortable inputting formulas in excel, appropriately formatting your work, and turning in a well-organized report. If not, please visit the BEC or the MARC for support.

Learning Outcomes:
1. Comfortably manipulate data in Excel

2. Use Excel to compute present value and future value concepts.

3. Generate a well-organized spreadsheet report

REQUIRED: Using Excel, answer the following questions. (see guidelines at the end).

Questions:

1. Lauren invests $10,000 at a simple interest of 10%. How much interest will Lauren earn after 5 years? How much total will be in the account after 5 years?

2. Nan and Neal are twins. Nan invests $5,000 at 7 percent at age 25. Neal invests $5,000 at 7 percent at age 30. Both investments compound interest annually. Both twins retire at age 60 and neither adds nor withdraws funds prior to retirement. Who will have more money in their retirement account? By how much?

3. Your older sister deposited $2,500 today at 6.5 percent interest for 15 years. However, you can only earn 6.25 percent interest. How much more money must you deposit today than your sister did if you are to have the same amount saved at the end of the 15 years?

4. When you retire 45 years from now, you want to have $1.25 million saved. You think you can earn an average of 7.6 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum five years from today to fund this goal. How much more will you have to deposit if you wait for five years before making the deposit?

5. You have just received notification that you have won the $1.25 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday, 79 years from now. The appropriate discount rate is 6.4 percent. What is the present value of your winnings?

6. In 1903, the winner of a competition was paid $50. In 2017, the winner’s prize was $235,000. What will the winner’s prize be in 2040 if the prize continues increasing at the same rate?

7. You’re trying to save to buy a new $68,000 sports car. Currently, you have saved $36,840 which is invested at 4.9 percent annual interest. How many years will it be before you purchase the car, assuming the price of the car remains constant?

GUIDELINES:

1. You may use the same Tab for all questions or choose to use a separate Tab for each question. Regardless of the choice, label your work appropriately. See the sample Excel provided.

2. Be neat and organized

3. Format your data appropriately

4. If you need help, seek help early

5. Save your work in the format: “Excel HW3 LASTNAME”

6. Submit your work on Canvas before by the due date

7. Refer to the syllabus for other general assignment policies

When submitting your work, assume you are submitting it to your potential employer. Be neat, organized, and professional.