Please show how to write the formulas for these in Excel. That is what the assignment...

50.1K

Verified Solution

Question

Finance

Please show how to write the formulas for these in Excel. Thatis what the assignment requires and I don't know how to do it.Thank you! All are in column D. Cell numbers that matter are notedon the left.

Suppose the risk-free interest rate is 4%.
a.Having $200 today is equivalent to having what amount in oneyear?
b.Having $200 in one year is equivalent to having what amounttoday?
c.Which would you prefer, $200 today or $200 in one year?
D
9Interest rate4.00%
11a.Having $200 today is equivalent to having what amount in oneyear?
13Amount today$200.00
15Value in 1 year
17b.Having $200 in one year is equivalent to having what amounttoday?
19Amount in 1 year$200.00
21Value today
c.Which would you prefer, $200 today or $200 in one year?
25I would prefer $200.

Answer & Explanation Solved by verified expert
4.5 Ratings (937 Votes)
For partaIn order to calculate the future value of 200 today we willuse the below formulaFV    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Please show how to write the formulas for these in Excel. Thatis what the assignment requires and I don't know how to do it.Thank you! All are in column D. Cell numbers that matter are notedon the left.Suppose the risk-free interest rate is 4%.a.Having $200 today is equivalent to having what amount in oneyear?b.Having $200 in one year is equivalent to having what amounttoday?c.Which would you prefer, $200 today or $200 in one year?D9Interest rate4.00%11a.Having $200 today is equivalent to having what amount in oneyear?13Amount today$200.0015Value in 1 year17b.Having $200 in one year is equivalent to having what amounttoday?19Amount in 1 year$200.0021Value todayc.Which would you prefer, $200 today or $200 in one year?25I would prefer $200.

Other questions asked by students