Number of pages is not specified on this assignment.
Caiden
corporate-finance-week-1-assignment-3.docxAssignment 3: Quantitative Exercises and Valuation
Part One: Application, Time Value of Money Calculations
Required:
Complete the assignment using the formulas embedded in Microsoft Excel and/or a financial calculator. Include an Excel document that shows your calculations.
(The Spreadsheet is attached).
Part Two: Time Value of Money Problem
You would like to buy a new car in five years for cash. The price of the car today is $56,000 and you expect that the price will increase by 6% per year. You plan to save for this car starting today with a deposit in your savings account, which currently has a balance of $1,800 and earns 4% compounded annually.
You know that you will be receiving an inheritance of $3,500 three years from today, which you will deposit in your savings account for the car. If you make a deposit every month for the next five years beginning one month from today, how much will the deposit have to be in order for you to be able to pay cash for the car?
Required
Complete the assignment using the formulas embedded in Excel and/or a financial calculator. Include an Excel document that shows your calculations. (The Spreadsheet is attached).
