Assignment
1. Chapter 2, Mini Case
2. Excel problems.
Create a spreadsheet to forecast the value of your portfolio in 10 years. Your starting balance is $5,000.
Your current income will be $45,000 a year.
You estimate that you will get a 3% raise every year.
You estimate that you can save 10% of your gross income and put it into your investment each year.
You estimate that your investments will grow at 5% per year.
What will be the future value of your investments if:
Your investments grow at 6% a year?
You can save 15% each year?
You can get a 4% raise each year?
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.