Assignment

1.  Chapter 2, Mini Case

2.  Excel problems.

        1. Create a spreadsheet to forecast the value of your portfolio in 10 years.  Your starting balance is $5,000.

        2. Your current income will be $45,000 a year.

        3. You estimate that you will get a 3% raise every year.

        4. You estimate that you can save 10% of your gross income and put it into your investment each year.

        5. You estimate that your investments will grow at 5% per year.

What will be the future value of your investments if:

        1. Your investments grow at 6% a year?

        2. You can save 15% each year?

        3. You can get a 4% raise each year?

        4. Starting in year 5 you can earn a 10% bonus each year?

Deliverables

Chapter 2, Mini Case Report to CFO on nominal interest rate.  Hand in. (typed)

Excel spreadsheet. - Not to be handed in or graded.  Will be looked at, maybe shared, and discussed in class.