Problem 31. Can an EXCEl formula be use to solve this problem, if so what is the formula? Show all work.

THE TIME VALUE OF MONEY 107 Sam has an outstanding balance of $7,050 on his credit card. Due to financial constraints, he (Amortization) interest rate is 13.5%. How long will it take lans the $125 minimum monthly payment. His annual ,6 him to payoff the credit card? What will be his balance after making 4.5 years of monthly payments? he (Amortization) Sam has an outstanding balance of $2,050 on his credit card. Due to financial constraints, plans to make the S25 minimum monthly payment. His annual interest rate is 10.5%. How long will it take him to payoff the credit card? What will be his balance after making 4.5 years of monthly payments? 28. (Perpetuity) A consol is a financial security that pays in perpetuity. How much would you be willing to pay for a consol that pays $50 monthly, if the monthly interest rate is 1%? 29. (Perpetuity) How much would you be willing to pay for a consol that pays $230 monthly, if the monthly interest rate is 2%? and pays $1,000 monthly? 30 (Perpetuity) What is the annual rate of return on a perpetuity that costs $500,000 31. (Perpetuity) What is the annual rate ofreturn on a perpetuity that costs $500,000 and pays $2,000 monthly