PLEASE SHOW ALL FORMULAS USING EXCEL. FOR EXAMPLE =PV(C42,C41,C40,0,0)

G H K A B D E F 80 81 7) You have a liability of $1,000,000 (FV = $1M) due in 10 years. Your re-invesment rate is 4% per year. What 82 amount of money would you need to set aside at the end of each of the next 10 years to meet this liability. 83 84 85 Payment 86 Term 10 87 Rate ? 88 FV $ 1,000,000.00 89 90 Amount 0 7 Points possible 91 92 8) You graduated! You are going to buy a new car. The cost of the car is $50,000. You have been offered two 93 payment plans: 94 a. A 10% discount on the cost of the car followed by 60 monthly payments financed at 9 percent per year 95 b. There is no discount on the cost of the car, but the 60 monthly payments are financed at only 2 percent per year. 96 If you believe your annual cost of capital is 9 percent, which payment plan is a better deal? Assume all payments 97 occur at the end of the month. 98 (P.S. Just kidding, you didn't graduate, yet.) 99 100 101 102 Payment Option 1 Option 2 103 Term 60 60 104 Rate 105 PV 45,000.00 $50,000.00 106 107 Amount 0 108/ Which one is better? Hightlight it in GREEN. 1099) I currently have $10,000 in the bank. At the beginning of each of the next 20 years, I am 110 going to invest $4,000 and I expect to earn 6 percent per year on my investments. How much 111 money will I have in 20 years? 112 113 Payment 4,000 114 Term 20 115 Rate 6% 116 PV 117 118 Amount 08 Points possible 119 120 121 $