Answer the question in excel format. Excel formulas are below.

1. Solve for the unknown variables (identified with a ?) based on the information provided. Maturity / Future Value Interest Amount ? ? $1,171.44 $2,073.67 Principal / Present Value $16,775.00 ? ? $41,679.00 Interest Rate 0.5% per month 9% 5%% ? Time 6 months 2 months ? months 227 days $61,915.00 $23,394.44 2. Jayne needs to make three payments to Jade requiring $2,000 each 5 months, 10 months, and 15 months from today. She proposes instead making a single payment eight months from today. If Jade agrees to a simple interest rate of 9.5%, what amount should Jayne pay? 3. Marrina is searching for the best way to invest her $10,000. One financial institution offers 4.25% on three-month term deposits and 4.5% on six-month term deposits. Marrina is considering either doing two back-to-back three-month term deposits or just taking the six-month deposit. It is almost certain that interest rates will rise by 0.5% before her first three month term is up. She will place the simple interest and principal from the first three-month term deposit into the second three-month deposit. Which option should Marrina pursue? How much better is your recommended option? 4. Alia took out three back-to-back short-term simple interest investments. On November 10, Alia had saved up a total of $12,986.75. Her interest rate for each investment is listed below: Dates Interest Rate March 2 to June 19 4.13% June 19 to October 7 4,63% October 7 to November 10 4.43% How much did Alia originally invest on March 2? Assume that the principal and interest from a prior investment are both placed into the next investment. 5. Use economic equivalence to determine the amount of money or value of i that makes the following statements correct a. $5000 today is equivalent to $4275 exactly 1 year ago at i = _% per year. b. A car that costs $28,000 today will cost $_a year from now at i = 4% per year. c. At i = 4% per year, a car that costs $28,000 now, would have cost $ one year ago d. Last year, Jackson borrowed $20,000 to buy a preowned boat. He repaid the principal of the loan plus $2750 interest after only 1 year. This year, his brother Henri borrowed $15,000 to buy a car and expects to pay it off in only 1 year plus interest of $2295. The rate that each brother paid for his loan is __ % for Jackson and __ % per year for Henri. e. Last year, Sheila turned down a job that paid $75,000 per year. This year, she accepted one that pays $81,000 per year. The salaries are equivalent at i- _% per year. 1 6. Valley Rendering, Inc. is considering purchasing a new flotation system for grease recovery. The company can finance a $150,000 system at 5% per year compound interest or 5.5% per year simple interest. If the total amount owed is due in a single payment at the end of 3 years, (a) which interest rate should the company select, and (b) how much is the difference in interest between the two schemes? 7. Fill in the missing values (A through D) for a loan of $10,000 if the interest rate is compounded at 10% per year. Interest for Year End of Year 0 1 2 3 Amount Owed End of Year Amount Owed After Interest Payment After Payment 10,000 11,000 2,000 9,000 9,900 2,000 A 2,000 D 1,000 900 B 8. For each statement, identify the compounding period, the payment period, and the type of interest rate (nominal or effective), then express each rate as an effective annual, and monthly rate. a. 8% per year b. 2.5% per quarter C. 8.5% compounded monthly d. 6.8% quarterly, compounded monthly e. 2% per month, compounded weekly f. 1% per week 9. Ford Motor Company is considering an early retirement buyout package for some employees. The package involves paying out today's fair value of the employee's final year of salary. Shelby is due to retire in one year. Her salary is at the company maximum of $72,000. If prevailing interest rates are 6.75% compounded monthly, what buyout amount should Ford offer to Shelby today? 10. Exactly how long will it take for your money to quadruple at 6.54% compounded monthly? Part 2 - Cash Flow Analysis (10 points) 11. How much money should a bank be willing to loan a real estate developer who will repay the loan by selling seven lakefront lots at $120,000 each 2 years from now? Assume the bank's interest rate is 10% per year. 12. A $10,000 loan at 8.15% compounded quarterly is to be repaid by two payments. The first payment is due in 9 months and the second payment, 1x times the size of the first payment, is due in 33 months. Determine the amount of each payment 13. Three payments of $4,000 each are overdue to the same creditor by 1.5 years, 1 year, and 0.5 years. Three future payments of $4,000 each are due in 0.5 years, 1 year, and 1.5 years. Using an interest rate of 5.35% compounded quarterly, the debtor wants to make a single payment of $25,750. When should this payment be made? 14. Kevin wants to save up $30,000 in an annuity earning 4.75% compounded annually so that he can pay cash for a new car that he will buy in three years' time. What is the difference in his monthly contributions if he starts today instead of one month from now? 15. Many companies keep a "slush fund" available to cover unexpected expenses. Suppose that a $15,000 fund earning 6.4% compounded semi-annually continues to receive month-end contributions of $1,000 for the next five years, and that a withdrawal of $12,000 is made two-and-a- half years from today along with a second withdrawal of $23,000 four years from today. What is the maturity value of the fund? 16. Stan and Kendra's children are currently four and two years old. When their older child turns 18, they want to have saved up enough money so that at the beginning of each year they can withdraw $20,000 for the first two years, $40,000 for the next two years, and $20,000 for a final two years to subsidize their children's cost of postsecondary education. The annuity earns 4.75% compounded semi-annually when paying out and 6.5% compounded monthly when they are contributing toward it. Starting today, what beginning-of-quarter payments must they deposit until their oldest reaches 18 years of age in order to accumulate the needed funds? 17. In 2009, the Canadian federal government committed $1.5 million in annual operating funding for the Canadian Museum for Human Rights in Winnipeg, which opened in 2014. If the government had funded the museum by setting up an ordinary perpetuity in 2009 that could earn prevailing interest rates of 3% compounded annually, how much money would have been required? 18. Amelia's will states that $150,000 is to be set aside into a fund that will make annual payments to her grandson starting when he turns 18 years old, If Amelia dies when her grandson is six years old and the fund can earn 4.9% compounded quarterly, what annual payment will he receive in perpetuity? 19. The Pedernales Electric Cooperative estimates that the present worth now of increased revenue from an investment in renewable energy sources is $12,475,000. There will be no new revenue in years 1 or 2, but in year 3 revenue will be $250,000, and thereafter it will increase according to an arithmetic gradient through year 15. What is the required gradient if the expected rate of return is 15% per year? 20. The City of San Antonio is considering various options for providing water in its 50-year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 4 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 20 years, what is the present worth of the desalting option revenue at an interest rate of 6% per year? Format for Spreadsheet Functions on Excel Present worth Contents of = PVCI%,,A,F) for constant A series: single F value = NPVG second_cell:last_cell) +first_cell for varying cash flow series Future worth: =FV1%, A.P) for constant series; single P value Annual worth = PMT67%.11.P.F) for single amounts with no A series = PMT1%,.NPV) to find AW from NPV: embed NPV function Number of periods (years); =NPERI%,A,P.F) for constant A series, single P and F (Note: The PV.FV, and PMT functions change the sense of the sign. Place a minus in front of the function to retain the same sign. Rate of retum = RATE(n,A,P.F) for constant A series, single and F = IRR(first_cell:last_cell) for varying cash flow series Interest rate: = EFFECT() for nominal r.compounded me times per period = NOMINAL(14) for effective annual i compounded times per year Depreciation: = SLN(P.S..) straight line depreciation for each period = DDB(P.S.n..) double declining balance depreciation for period rat rated (optional) = DB(P.S,1,1) declining balance, rate determined by the function = VBDPO...MAX(0.11.5). MACRS depreciation for year at rated for MIN(n,1-0.5),d) DDB or DB method Logical IF function: = IF(logical test,value_iftrue,value_if_false) for logical two-branch operations