1. What will be your annual cost, if you have an average cash balance is $1,000 ,and you will withdraw $500 every 7th day, nominal interest rate is 3%, opportunity cost is 15%, and probability of loss is 5%.

2. Suppose the money-demand equation is: MD= P * [(0.125* Y) (75*i )

Initially, the data is given at: P=2; Y=8,000, and i =6. Determine the MD If Y falls to 7,600 and price level does not change, what will be the new M . How much is the change in the money supply, did it increase or decrease?

please show how to input into excel sheet! thank you so much!