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This Tutorial comes with a excel sheet P3-1
Future Value. Fill in the future values for the following table using one of the three methods below:
a. Use the future value formula, FV = PV *( 1 + r) n. b. Use the TVM keys from a calculor. c. Use the TVM function in a spreadsheet. P3 – 4
Future Value. Grand opening Bank is offering a one-time investment opportunity for its new customer. A customer opening a new checking account can buy a special saving bond for $ 400 today, Which the bank will compound at 8.5 % for the next ten years. The savings bond must be held for at least five years, but can then be cashed in at end of any year starting with years five. What is the value of the bond at each cash-in date up through year ten?
What is the value of the savings bond at the end of year five? a. What is the value of the savings bond at the end of year five? b. What is the value of the savings bond at the end of year six? c. What is the value of the savings bond at the end of year seven?