Description UNFORMATTED ATTACHMENT PREVIEW Notes: All mathematical work must be completed on an Exc ...

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Description UNFORMATTED ATTACHMENT PREVIEW Notes: All mathematical work must be completed on an Excel document and submitted through Blackboard by the due date. Any analysis must be submitted on a Word Document using Safe Assign. Analysis must utilize APA formatting and requirements. Problems must be calculated using the Excel function keys for Present and/or Future value, as well as the mathematical formulas for Present and/or Future Value. Student must show their work in the cells to receive credit for the calculation. 1. A family plans to purchase their first home in 5 years. In order to be able to afford the monthly payments, the couple estimates they will need a down payment at the time of $150,000. Assuming they can earn 7% on their investment how much money will they need to deposit today? 2. Your grandparents agree to give you $20,000 at your college graduation in 4 years. You believe you can then invest the money at 8% for the next 5 years. How much will this money be worth in 9 years? 3. You will receive an ordinary annuity payment of $2,000. You want to know how much this will be worth today under the following scenarios. You receive the money for 10 years, 20 years, 30 years, and in perpetuity. How much will you today under each scenario if your required return is 6%? 4. You just graduated from college, and you remember your finance professor encouraging you to prepare early for retirement. You have two options, both of which have required returns of 9%: 5. You can deposit $2,000 a year at the end of the year from age 21-30 years old and then stop and let the money grow until you retire at 65. 6. You can deposit $2,000 a year at the end of the year beginning at age 31 until you retire at age 65. 7. Explain how the variables of time, rate, and cash flows affect the time value of money when calculating both present and future value. Based on your calculations, discuss which option-considering the time value of money concepts-proves to be the better investment. Use APA formatting for your analysis. 8. After working for several years, you decide to go to graduate school. You will not be able to work during this time so will need to withdraw $1,000 each quarter for living expenses over the next 2 years. Assuming you could earn 6% on your investments... 9. How much money will you need today assuming you withdraw money at the beginning of each quarter? 10. How much money will you need today assuming you withdraw the money at the end of each quarter? 11. Differentiate between an annuity versus a single cash flow. Explain why an annuity due will always be greater than an ordinary annuity using time value of money concepts. Use APA formatting for your analysis.