In: Finance
We would like to build an Excel model addressing the following
situation:
Kristy will open an...
We would like to build an Excel model addressing the following
situation:
Kristy will open an investment account on September 1, 2020
at a bank. She plans on saving and depositing $300 into the account
at the end of each month with first deposit on September 30, 2020.
The account will earn 6 percent interest compounded monthly (i.e.
she earns 6%/12=0.5% interest on deposits with the bank on any
given month). Kristy is curious about how much would accumulate in
her investment account after 20 years.
To help her with her financial planning you will prepare three
graphs using the data table feature in Microsoft Excel:
- A graph showing how much would accumulate in the bank account
after 1, 3, 5, 10, 20 (actual), or 30 years. Label the x-axis as
time and y-axis of the graph as dollar amount accumulated in the
bank account.
- A graph showing how much would accumulate in the bank account
if annual interest rate were 4%, 6% (the actual), 8%, 10%, and 12%
hypothetically. Label the x-axis of the graph as the interest rate
and the y-axis as dollar amount accumulated in the bank
account.
- A graph showing how much would accumulate in the bank account
if deposits were to be $100, $200, $300 (actual), or $500
hypothetically. Label the x-axis of the graph as the
monthly deposit amount and the y-axis as dollar amount accumulated
in the bank account.