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To see the impact of the interest rate on an investment, (a) Invest \$150,000 at 5% for 30 years….

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To see the impact of the interest rate on an investment,

(a) Invest \$150,000 at 5% for 30 years. Calculate the accumulated value of the \$150,000 at time 0 and then at the end of each of the next 30 years. (3 marks)

(b) Calculate the present value of \$150,000 due in 1 year, 2 years, 3 years, …, 30 years. Assume the interest rate is 9%. (3 marks) For both (a) and (b),

You should have 5 columns of calculations, assuming the given rate is a

i. Effective rate of discount

ii. Nominal rate of discount, compounded quarterly

iii. Nominal rate of interest, compounded continuously

iv. Nominal rate of interest, compounded quarterly

v. Effective rate of interest

just give the formula for each part will be great.