Please complete your work on separate paper. When doing problems to receive full credit, explain what was done in Excel and draw a cash flow diagram. Place in Excel spreadsheet in drop box at end of final. I may use to verify work on a problem, but 1 will not look in Excel for answers to problems. As loosely discussed in the last class period write down the 3 steps to become a millionaire: 1 2 3 Given that an investor saves $2,000 every year for the next 40 years. If the interest rate is 10% how much will the investor have at the end of the 40 years? If you borrow $135,000 to purchase a home and agree to make monthly payments for 15 years. What would the monthly payments be if the interest rate was 5% (APR)? Using the results from problem 3 what would the total interest paid over the life of the loan be? A company purchases a piece of equipment for $270,000. They determine it will have a useful life of 15 years and at the end of 15 years it will have a salvage value of $20,000. What will the straight line deprecation amount be? Given F = $18,000, N = 10 and i = 8%. What would the present value be? You purchase a home for $120,000. If the value if the home appreciates at 6% per year what will the value of the home be in 12 years? Suppose that you invest $40,000 in a business. Two years later you sell 3/5 the business for $80,000. One year after that you sell your remaining interest in the business for $20,000. What was your rate of return in your investment in this business? Be sure to draw a cash flow diagram. If using excel to solve be sure to explain methodology. What is the net present worth of the project which requires 110,000 investment now and receives 30,000 every year for five years at an interest rate of 12%