Directions: Answer the following nine questions $in$ Microsoft Excel. Assume all investment$\frac{s}{p}$ayments are

made $at$ the end $of$ the month unless otherwise noted. You should use the videos, examples, and template provided $on$

Canvasto help guide you $in$ answering these questions.

$*$ You must utilize the Excel functions discussed $in$ the tutorial $to$ perform all calculations.

$*$ Ensure that $in$ the Excel file template that you use $to$ answer the questions, you provide your first name,

your last name, and your student $IDin$ dedicated cells.

$$ Submissions that lack first name, last name, $or$ student $ID$ will automatically receive a zero.

Themini$-$project $is$ due $on$ Friday, June $28,2024,by11$:$59$ PMand must $be$ submitted via Canvas $as.xlsx$ file.

$*$ Ensure that your file $is$ named properly with your full name and the project title $(e.g.,$

$Joh{n}_{D}o{e}_{T}V{M}_P$roject.$xlsx).$

Your projects must $be$ your own individual work, although you may consult $meif$ you get stuck.

Questions

$(1.)$ Pawn America, a local pawn shop $in$ town, lends money $atan$ interest rate $of24\mathrm{.}00\%$ percent per annum

that compounds interest weekly. What $is$ the actual rate being charged $on$ these loans?

$(2.)$ A zero$-$coupon bond promises $to$ pay $$1,000in$ principal $15$ years from now. $If$ interest rate are currently

$at5\mathrm{.}00\%$ per year and expected $to$ stay constant over time, $at$ what price does the zero coupon bond trade?

$(3.)$ You have $an$ opportunity $to$ purchase $an$ annuity from $an$ insurance company that offers $to$ pay you

$$4,000$ a year for $20$ years. $If$ you want $to$ earn a rate $of$ return $ofat$ least $6\mathrm{.}50\%,$ what $is$ the most you are

willing $to$ pay today $to$ buy this annuity?

$(4.)$ Cirrus Aircraft estimates the cost $of$ a new factory $at$ $$20\mathrm{.}63$ million and wants $it$ fully funded upfront.

Management has decided $to$ save $$1\mathrm{.}1$ million per quarter for this purpose. Assume that the firm can earn $6\mathrm{.}25\%,$

compoundedquarterly, $on$ its savings. How many yearsdoesthe firm have $to$ wait before expandingits operations?

$(5.)$ Determine the internalrate ofreturn forthe following sequence $of$ cashflows:

Year Cash Flow

$0-$$$10,000$

$1$ $$400\mathrm{.}00$

$2$ $$800\mathrm{.}00$

$3$ $$1,600\mathrm{.}00$

$4$ $$3,200\mathrm{.}00$

$5$ $$6,400\mathrm{.}00$

$If$ the cost $of$ capital $is5\mathrm{.}75\%,$ should you accept $or$ reject this project?

$(6.)$ Determine the net present value $to$ the following sequence $of$ cash flows:

Year $012345678910$

Cash Flows $-$$$100,000$ $$50,000$ $$20,000$ $$10,000$ $$5,000$ $$5,000$ $$5,000$ $$5,000$ $$5,000$ $$1,000$ $$1,000$

Assume a cost $of$ capital $of6\mathrm{.}50\%.On$ the basis $of$ your calculation, should you accept $or$ reject the project?

$(7.)$ Suppose a friend $of$ yours tells you that they have $$28,000\mathrm{.}00in$ student debt and have $to$ make payment

$of$ $$200\mathrm{.}00$ per month for the next $20$ years $to$ completely pay the debt off. Based $on$ this information,

determine the annual percentage rate your friend must $be$ paying $on$ their student debt.

$2$

$(8.)$ Congratulations! You have just received your first job after college and have decided $to$ start saving

for retirement. You have decided $to$ contribute $$250\mathrm{.}00on$ the first $of$ each month, starting today, $to$ your

retirement account. Your employer will provide $a50$ percent match. $In$ other words, your employer will add

$$125\mathrm{.}00to$ the amount you save each month. $If$ both your employer and you continue $todo$ this and you

believe you can earn $an$ interest rate $of6\mathrm{.}00\%$ per year compounded monthly, how much will you have $in$

your retirement account $25$ years from now?

$(9.)$ Now that you have a job, you have decided $to$ quit renting and buy a house. Suppose that you wish $to$

take out a mortgage $to$ purchase a house worth $$250,000\mathrm{.}00.$ Your bank agrees $to$ lend you the money $in$ the

form $ofa30-$year mortgage with $an8\mathrm{.}00\%$ annual interest rate. Given this information determine what your

monthly mortgage payment will $be.$Directions: Answer the following nine questions $in$ Microsoft Excel. Assume all investment$\frac{s}{p}$ayments are

made $at$ the end $of$ the month unless otherwise noted. You should use the videos, examples, and template provided $on$

Canvas $to$ help guide you $in$ answering these questions.

You must utilize the Excel functions discussed $in$ the tutorial $to$ perform all calculations.

Ensure that $in$ the Excel file template that you use $to$ answer the questions, you provide your first name,

your last name, and your student $IDin$ dedicated cells.

Submissions that lack first name, last name, $or$ student $ID$ will automatically receive a zero.

The mini$-$project $is$ due $on$ Friday, June $28,2024,by11$:$59PM$ and must $be$ submitted via Canvas $as.xlsx$ file.

Ensure that your file $is$ named properly with your full name and the project title $(e.g.,$

$Joh{n}_{D}o{e}_{T}V{M}_P$roject.$xlsx).$

Your projects must $be$ your own individual work, although you may consult $meif$ you get stuck.

Questions

$(1.)$ Pawn America, a local pawn shop $in$ town, lends money $atan$ interest rate $of24\mathrm{.}00\%$ percent per annum

that compounds interest weekly. What $is$ the actual rate being charged $on$ these loans?

$(2.)$ A zero$-$coupon bond promises $to$ pay $$1,000$