[Get Solution] Financial Ratios
Financial Ratios and Basics of Time Value of Money (TVM)*Complete the problems from Module 3 and Module 4 in an Excel spreadsheet. Be sure to show your work to receive credit, no hard keys.Problem 4-1: Compound InterestTo what amount will the following investments accumulate?a. 5,000 SAR invested for 10 years at 10% compounded annuallyb. 8,000 SAR invested for 7 years at 8% compounded annuallyc. 775 SAR invested for 12 years at 12% compounded annuallyd. 21,000 SAR invested for 5 years at 5% compounded annuallyProblem 4-2: Future value calculationsYou would like to make a single investment and have 2 million SAR at the time your retirement in 35 years. You have found a mutual fund that will earn 4 percent annually. How much will you need to invest today? If you were a finance major and learned how to earn a 14% annual return, how much would you have to invest today?Problem 4-3: Present value calculationsWhat is the present value of the following future amounts?a. 800 SAR to be received 10 years from now discounted back to the present at 10%.b. 300 SAR to be received 5 years from now discounted back to the present at 5%.c. 1,000 SAR to be received 8 years from now discounted back to the present at 3%.d. 1,000 SAR to be received 8 years from now discounted back to the present at 20%.Problem 4-4 Financial RatiosThe Balance Sheet and the Income Statement for Morris Manufacturing Corporation are as follows:
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