Directions: Answer the following nine questions in Microsoft Excel. Assume all investments$/$payments 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 ID in 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 $28,2024,$ by $11$:$59$ PM 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$.,$

John$\_$Doe$\_$TVM$\_$Project.xlsx$).$

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

Questions

$(1.)$ Pawn America, a local pawn shop in town, lends money at an interest rate of $24\mathrm{.}00\%$ 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$ in principal $15$ years from now. If interest rate are currently

at $5\mathrm{.}00\%$ 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 of at 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 earm $6\mathrm{.}25\%,$

compounded quarterly, on its savings. How many years does the firm have to wait before expanding its operations?

$(5.)$ Determine the internal rate of return for the following sequence of cash flows:

If the cost of capital is $5\mathrm{.}75\%,$ should you accept or reject this project?

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

Assume a cost of capital of $6\mathrm{.}50\%.$ 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{.}00$ in 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.

$(8.)$ 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{.}00$ on the first of each month, starting today, to your

retirement account. Your employer will provide a $50$ percent match. In other words, your employer will add

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

believe you can earn an interest rate of $6\mathrm{.}00\%$ 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 of a $30-$year mortgage with an $8\mathrm{.}00\%$ annual interest rate. Given this information determine what your

monthly mortgage payment will be$.$