An annuity pays a fixed amount of $3,000 at the end of each of the next 5 years. Assume the interest rate is 8%. Use Excel, and list the time period (0, 1, 2, 3, 4, 5) and the amount $3,000. Then, Use Excel function to calculate the present value of the annuity. Use Excel function to calculate the future value of the annuity 5 years (enf of 5th year) from now. Submit the Excel file with all the details of time periods, amount of payment, and the Excel functions used to calculate the answers.

An annuity pays a fixed amount of $3,000 at the end of each of the next 5 years. Assume the interest rate is 8%. Use Excel, and list the time period (0, 1, 2, 3, 4, 5) and the amount $3,000. Then, Use Excel function to calculate the present value of the annuity. Use Excel function to calculate the future value of the annuity 5 years (enf of 5th year) from now. Submit the Excel file with all the details of time periods, amount of payment, and the Excel functions used to calculate the answers.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 7MC

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