FIN 405

Excel spreadsheet 1 (12 points)

Directions: Please answer the following questions. Submit the answers in an Excel

spreadsheet. Format the assignment by labeling each question number and placing the

formula to its right (similar to the example).

1. How much money will you have in 2 years if you invest $100 at 10% interest a year?

1. How much money do you need to invest today to save $500,000 in 40 years. Assume a semi-annual interest rate of 7%.

1. (you need to show all steps in Excel) You borrow $150,000 to buy a house. The mortgage rate is 8.5 percent and the loan period is 30 years. Payments are made monthly. If you pay for the house according to the loan agreement, how much total interest will you pay? (Round the payment to two decimal places when computing the total interest.)

1. You estimate that you will have $44,500 in student loans by the time you graduate. The interest rate is 6.5 percent, compounded monthly. If you want to have this debt paid in full within five years, how much must you pay each month?

1. Jensen's Shipping wants to expand as soon as it can save $142 million. Towards that goal, the firm started saving three years ago and currently has $19.6 million saved. Starting today, the firm will add $12,000 a month to this savings account. The rate of return is 13.1 percent, compounded monthly. How long will it be from now before the company can expand?

1. Rose Stores has been investing $135,000 a year for the past 5 years into a business venture. Today, that venture was sold for $925,000. What rate of return was earned on this investment?

1. (you may use NPV or sum the PVs) You are considering a project with the following cash flows: $1200 in Year 1; $1800 in Year 2; and $2900 in Year 3. What is the present value of these cash flows at a discount rate of 9 percent?

1. What is the effective annual rate if a bank charges you 7.35 percent, compounded daily?

1. You just invested $13,000 for seven years at 14 percent, compounded continuously. What will the value of your investment be at the end of the seven years (you may just use the formulano function needed)?

1. A 10-year loan in the amount of $238,000 is to be repaid in equal annual payments. The interest rate is 7 percent, compounded annually. What is the amount of interest that is included in the loan payment for Year 3?

Please help with the excel formula parts.

Thanks!