Please do these problems on excel and by hand

1_____You have an opportunity to make an investment today that you estimate will generate a cash flow of $3,500 in year one, $2,100 in year two and $12,500 in year three. Assume all cash flows will occur at the end of each year and that the investment will have no value after year three. If you feel the appropriate rate of return on this investment is 18%, how large of an investment are you willing to make today in order to generate these cash flows?

$18,100

$14,257

$12,082

$10,986

2_____You make a $20,000 investment that gives you a cash flow of $1,900 in year one, $1,200 in year two, $5,800 in year three, and $18,500 in year four. What annual rate of return has your investment

generated? Assume all cash flows are received at the end of each year and no terminal value.

9.53%

8.46%

7.15%

6.43%

3 _____What is the present value of an annuity due that pays you $5,000 per month for the next 40 years? Assume no terminal value and a discount rate of 8%.

$719,102

$723,896

$750,222

$786,315

4_____What is the effective rate of interest on a loan that charges you 9% compounded monthly?

9.98%

9.38%

9.00%

8.74%