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(a) In cell A6, type 1. Rather than copying the numbers 2 to 25, we can fill down based on the formula in cell A7 which is = A6+1. Locate A7 (Since this is where the formula begins) by clicking on the center of the cell. Go to the far lower right hand corner of cell A7 and hold down the left mouse button when you see the cursor change. Holding the left mouse button down, drag the cell down to year 40 and let go off the mouse button. Couple A opens a bank account and decides to deposit $1900.00 at the end of each year for 8 years in an account which earns 8% interest compounded annually for 40 years. Year 8 is the last time they deposit any money meaning there is no deposit value for years 9 to 40. Remember that the Interest column is for the Interest formula, do not just put in the interest rate. When the couple opens the bank account (the first year), there is no money in Beginning Balance. Set up your spreadsheet for Couple A accordingly. You should get $23572.47 for your ending balance for year 10. What is the ending balance for Couple A after 40 years? $ How much did Couple A actually deposit? $ What is the total amount of interest earned by Couple A? $ (b)Couple B decides to "live it up" for the first 8 years, meaning there is no deposit value for years 1 to 8. At the end f year 9, they deposit $1900.00 at the end of each year in an account which earns 8% interest compounded annually. Set up your spreadsheet for Couple B, showing their financial status for 40 years. You should get $3952.00 for your ending balance for year 10. What is the ending balance for Couple B after 40 years? $ How much did Couple B actually deposit? $ What is the total amount interest earned by Couple B? $ (c)At what year has Couple B's account exceeded Couple A's account? (d)At the year couple B's account exceeded couple A's account (your answer from part c), in total how much more had couple B deposited than couple A. $

(a) In cell A6, type 1. Rather than copying the numbers 2 to 25, we can fill down based on the formula in cell A7 which is = A6+1. Locate A7 (Since this is where the formula begins) by clicking on the center of the cell. Go to the far lower right hand corner of cell A7 and hold down the left mouse button when you see the cursor change. Holding the left mouse button down, drag the cell down to year 40 and let go off the mouse button. Couple A opens a bank account and decides to deposit $1900.00 at the end of each year for 8 years in an account which earns 8% interest compounded annually for 40 years. Year 8 is the last time they deposit any money meaning there is no deposit value for years 9 to 40. Remember that the Interest column is for the Interest formula, do not just put in the interest rate. When the couple opens the bank account (the first year), there is no money in Beginning Balance. Set up your spreadsheet for Couple A accordingly. You should get $23572.47 for your ending balance for year 10. What is the ending balance for Couple A after 40 years? $ How much did Couple A actually deposit? $ What is the total amount of interest earned by Couple A? $ (b)Couple B decides to "live it up" for the first 8 years, meaning there is no deposit value for years 1 to 8. At the end f year 9, they deposit $1900.00 at the end of each year in an account which earns 8% interest compounded annually. Set up your spreadsheet for Couple B, showing their financial status for 40 years. You should get $3952.00 for your ending balance for year 10. What is the ending balance for Couple B after 40 years? $ How much did Couple B actually deposit? $ What is the total amount interest earned by Couple B? $ (c)At what year has Couple B's account exceeded Couple A's account? (d)At the year couple B's account exceeded couple A's account (your answer from part c), in total how much more had couple B deposited than couple A. $

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter20: Activity-based Costing (abc)
Section: Chapter Questions
Problem 5R
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(a) In cell A6, type 1. Rather than copying the numbers 2 to 25, we can fill down based on the formula in cell A7 which is = A6+1. Locate A7 (Since this is where the formula begins) by clicking on the center of the cell. Go to the far lower right hand corner of cell A7 and hold down the left mouse button when you see the cursor change. Holding the left mouse button down, drag the cell down to year 40 and let go off the mouse button. Couple A opens a bank account and decides to deposit $1900.00 at the end of each year for 8 years in an account which earns 8% interest compounded annually for 40 years. Year 8 is the last time they deposit any money meaning there is no deposit value for years 9 to 40. Remember that the Interest column is for the Interest formula, do not just put in the interest rate. When the couple opens the bank account (the first year), there is no money in Beginning Balance. Set up your spreadsheet for Couple A accordingly. You should get $23572.47 for your ending balance for year 10. What is the ending balance for Couple A after 40 years? $ How much did Couple A actually deposit? $ What is the total amount of interest earned by Couple A? $ (b) Couple B decides to "live it up" for the first 8 years, meaning there is no deposit value for years 1 to 8. At the end of year 9, they deposit $1900.00 at the end of each year in an account which earns 8% interest compounded annually. Set up your spreadsheet for Couple B, showing their financial status for 40 years. You should get $3952.00 for your ending balance for year 10. What is the ending balance for Couple B after 40 years? $ How much did Couple B actually deposit? $ What is the total amount of interest earned by Couple B? $ (c)At what year has Couple B's account exceeded Couple A's account? (d)At the year couple B's account exceeded couple A's account (your answer from part c), in total how much more had couple B deposited than couple A. $ Submit Answer
Transcribed Image Text:(a) In cell A6, type 1. Rather than copying the numbers 2 to 25, we can fill down based on the formula in cell A7 which is = A6+1. Locate A7 (Since this is where the formula begins) by clicking on the center of the cell. Go to the far lower right hand corner of cell A7 and hold down the left mouse button when you see the cursor change. Holding the left mouse button down, drag the cell down to year 40 and let go off the mouse button. Couple A opens a bank account and decides to deposit $1900.00 at the end of each year for 8 years in an account which earns 8% interest compounded annually for 40 years. Year 8 is the last time they deposit any money meaning there is no deposit value for years 9 to 40. Remember that the Interest column is for the Interest formula, do not just put in the interest rate. When the couple opens the bank account (the first year), there is no money in Beginning Balance. Set up your spreadsheet for Couple A accordingly. You should get $23572.47 for your ending balance for year 10. What is the ending balance for Couple A after 40 years? $ How much did Couple A actually deposit? $ What is the total amount of interest earned by Couple A? $ (b) Couple B decides to "live it up" for the first 8 years, meaning there is no deposit value for years 1 to 8. At the end of year 9, they deposit $1900.00 at the end of each year in an account which earns 8% interest compounded annually. Set up your spreadsheet for Couple B, showing their financial status for 40 years. You should get $3952.00 for your ending balance for year 10. What is the ending balance for Couple B after 40 years? $ How much did Couple B actually deposit? $ What is the total amount of interest earned by Couple B? $ (c)At what year has Couple B's account exceeded Couple A's account? (d)At the year couple B's account exceeded couple A's account (your answer from part c), in total how much more had couple B deposited than couple A. $ Submit Answer
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