Question

A friend of yours contacts you about an illegal payoff scheme to judges she is aware of at the prison she works at. Your friend has consulted with an attorney and believes she could be eligible for a $10 million whistleblower pay out. Although this is a good start, your friend believes she would need $20 million to retire comfortably, with the lifestyle she desires. She wonders aloud how many years it would take to double her money to $20 million, assuming a 6% rate. Calculate this for her using an Excel function, not with the rule of 72. (round to the nearest year) Use an Excel function to find the expected rate of return based on the following 5 years of historical returns. (round to one decimal place) Year 2014 2015 2016 2017 2018 Return -13% 3% 8% -2% 17% Use an Excel function to find the standard deviation of historical returns in the previous problem. (round to one decimal place)

Answer 1

1)

number of years to double the money using excel function

=NPER(rate,pmt,pv,fv)

=NPER(6%,0,-10,20)

=11.90 or 12 years

the above is answer..

we do only one question as HOMEWORKLIB rule