All questions must be answered in your excel document. I will be taking of points if the input cells are not clearly labeled and have the correct units. Percentages must be written with % and money with $. 1. Explain the difference between simple interest and compound interest. 2. On January 1st I took out a loan for $15,500 at 2.95% annual interest. It is a simple interest loan due on December 15. How much will I owe on October 15? 3. On January 1st I took out a loan for $15,500 at 2.95% annual interest. It is a simple interest loan due on December 15. I make a partial payment of $8,000 on June 1st, how much will I owe on December 15? 4. Find the future value of $13,000 invested at 2.30% annual interest compounded monthly for 12 years. Complete the table below, include headings for the table and the inputs into the excel function. Answer with a sentence. 5. Dave wants to invest money now at 3.45% annual interest in an account that is compounded monthly. How much does Dave need to invest now in order to have $25,000 in 10 years? Dave will not be making any monthly payments. Answer with a sentence. 6. I financed $28,500 at 3.15% annual interest for 5 years to buy a car. What are my monthly car payments? Answer with a sentence. 7. You owe $20,000 on a credit card. The interest is 19.5% annually and you plan on making monthly payments of $650. How long until you paid off your credit card debt? Answer with a sentence. 8. After reviewing your monthly bills, you decide that you can afford a $575 monthly car payment. A car dealer will grant you a 5 year loan with a 3.60% annual interest compounded monthly. What is the maximum amount of the car that you can afford to buy? 9. How much do I have to invest every month in an account that pays 2.85% annual interest if I want $325,000 in 20 years? Answer with a sentence. 10. I want to buy my dream home. It costs $625,000. a. I need a down payment of 20%. What is my down payment? b. How much do I have to borrow to buy my house? (Find the loan amount.) c. What will my monthly payments be if I get a 30 year loan at 2.65% annual interest? Answer with a sentence. d. How much interest did I pay for the entire loan? e. Compute the first two months of my amortization table. Carefully write the table and show your work. 12. Government student loans usually do not need to be paid back until 6 months after you graduate. Interest on your loan is computed from the time you take out the loan. You have the option of paying the interest every month or allowing the interest to accumulate until you begin to pay back the loan. You have 10 years to pay back the loan. You borrow $5,950 for your freshman year of college at an annual interest of 4.15% compounded monthly. a. Suppose you decide not to pay the interest every month while you are in school, how much will you owe 6 months after you graduate? (Assume it takes four years to graduate from college or 51 months until you begin to pay off the loan.) b. What will be your monthly payments? c. What is the total amount that you paid for the loan? How much interest did you pay?