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You have made arrangements to borrow $1,000 now and another $1,000 three years from now (End of Yr 3). The obligation is to be repaid at the end of four years. If the projected interest rates in years one, two, three, and four are 10%, 12%, 12%, and 14% respectively:

a) In EXCEL create a Cash Flow Table. Showing: time increments, interest values, borrowed amounts and Lump Sum Payments.

b) How much will be repaid as a lump-sum amount at the end of four years?

Method 1: Future Worth calculations (tables in back of book or EXCEL)

Method 2: Use the EXCEL function =FVSCHEDULE

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91299474

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