ANSWER USING EXCEL PLEASE!

3. Mary wants to buy a new car in five years. The car sells today for $32,000. and the inflation rate on cars is expected to be 2.5% per year. a. What price should Mary expect to pay for her car in five years? Calculate the price using two methods, using the formula and the Excel function. Mary does not know anything about the time value of money, so she does a guess that she will need to deposit $545.00 into a savings account each month. She has a choice between 3 banks for her savings account. Bank A offers 5.05% per year compounded semi-annually, Bank B offers 4.95% per year compounded monthly, Bank C offers 5% per year compounded weekly. b. Using an appropriately set up table, calculate for each option the effective interest rate, the equivalent nominal interest rate with monthly compounding, and then future value of the monthly deposits into Mary's savings account. [Rem aber to use the nominal interest rate with monthly compounding to calculate the future value.] c. Explain which bank Mary should select and why. Use both the effective interest rate and the future value in your explanation. d. If Mary took your recommendation in part c, what should be Mary's monthly deposit to have enough savings to purchase the car, at the price you calculated in part a? Mary does not know anything about the time value of money, so she selects Bank A, thinking that 5.05% is going to pay her the most interest