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I am needing to work these out in Excel but I cannot figure out the formulas on Excel for them. Could you please assist? Annuities

I am needing to work these out in Excel but I cannot figure out the formulas on Excel for them. Could you please assist?

Annuities with Intraperiod Compounding

  1. Example 3.14: Suppose you set aside $250 at the end of every three months toward your future retirement, planned forty years from today, at an 8% interest rate. What is the future ending value of your investment?

Basic Loan Calculations

  1. Example 3.15: The Texas lottery example continued.

Suppose you want to open a microbrewery business and need $4,250,000. You have a lender willing to advance you the funds with your future lottery cash flows as collateral. The lender requires 10% interest rate with annual payments over the next twenty years.

  1. How much will your payments be?
  2. Build an amortization schedule for the microbrewery business example.
  3. For the lotterybacked microbrewery loan, what is the loan balance after five years?
  4. What interest amount was paid for that fifth year? That is, what was the amount paid to the interest within year 5?
  5. What is the total interest paid over the life of the loan?

Finding Interest Rates and Number of Periods

  1. Example 3.16: If the future value of an ordinary annuity is $5,751, the annual payment is $1,000, and the time period is five years. What is the interest rate for this annuity?
  2. Example 3.17: If the future value of an ordinary annuity is $5,751, the annual payment is $1,000, and the interest rate is 7%. How long would it take for your $1,000 annual investments to grow to $5,751?

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