Determine the value that is described in each of the following investments. Assume that no money is withdrawn during the investment period, and provide 1 possible explanation of the use of each type of investment.

Determine the value that is described in each of the following investments. Assume that no money is withdrawn during the investment period, and provide 1 possible explanation of the use of each type of investment.

Excel :  

1.Using standard Net Present value tables, determine the present value of a dollar for $10,000.00 invested at 8%, compounded annually for a period of 5 years.

 

2.Using standard Net Present value tables, determine the future value of a dollar for a one-time $10,000.00 deposit earning 8% interest compounded annually to be withdrawn in 5 years.

 

3.Using standard Net Present value tables, determine the present value of an annuity that earns $10,000.00 payable in 5 annual installments over a period of 5 years, assuming 8% interest compounded annually.

 

4.Using standard Net Present value tables, determine the future value of an annuity of $10,000.00 annual deposits earning 8% interest compounded annually at the end of 5 years.

Assume no money is withdrawn during the investment period.

 

Provide one possible explanation of the uses of each type of investment.

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