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D E . 2 All problems can be done on Excel or using formulas. I will put all numbers in a cell 3 so you
D E . 2 All problems can be done on Excel or using formulas. I will put all numbers in a cell 3 so you can simply click on the number to solve the problem. Excel will show formulas for partial credit. 4 If you prefer you may work these on a calculator and type the answer: 5 if you are not using Excel functions and you want to show work for partial credit label it and put it on the same row as the answer. 6 ANSWER ALL QUESTIONS IN THE YELLOW BOXES IN THE CORRECT FORM. (4 decimals for returns and dollars for dollar answers: 5.46% or .0546 OR$11,245 7 1. You have bought an old car which you plan to fix up and sell. If you expect to 8 sell the car for $ 22,000 in 4 years and you require 9 a rate of 3% how much is this car project worth today? 10 Answer: 11 2. a. You invest $600 at the end of each year and expect to earn 12 3.00% per year for 12 years. 13 How much do you expect to be able to withdraw in 12 years? 14 (Assume you do not withdraw any money until year 12 ) 15 Answer: 16 b. If you invest the money at the beginning of the year, how much can you withdraw? 17 Invest $600 at the beginning of each year and expect to earn 18 3.00% per year for 12 years. 19 Answer: 20 3. You borrow $5,000 today, and will pay back $ 7,500 21 in years. What interest rate are you paying? 22 (You are only paying one time, no other payments over the years.) 23 Answer: 3
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