A UK-based life insurance company will pay a cash-value sum of £500,000 when the insured reaches the age of 65. The insured will be 65 years old 27 years from today. (a) Determine the cash value of the £500,000 in CV purchasing power, assuming inflation remains constant at 3% per year. (b) Write the spreadsheet single-cell function that displays the answer. (c) Convert your answer to U.S. dollars and euros using current exchange rates.
What will be an ideal response?
(a) CV purchasing power = 500,000/(1.03)²? = £225,095
(b) = -PV(3%,27,,500000) displays the answer £225,095
(c) Sample answers, depending upon the exchange rate (as of March 2016)
USD: £225,095(1.42) = $319,635
Euro: £225,095(1.29) = €290,373
You might also like to view...
To initiate a single point object snap :
a. Enter an object snap mode at the select objects b. Pick the Object snap button from the status bar c. Right-click the Object snap button and select single point d. Enter an object snap mode when AutoCAD prompts for point selection
Why are nuts a popular food in the U.S.?
What will be an ideal response?
Borrowing money requires the borrower to provide information about background and personal finances
Indicate whether the statement is true or false
Wiring diagrams are usually found where?
A) Lubrication guides B) Unit repair manuals C) Owners manuals D) Factory service manuals