The finance team is looking at some various CD and savings options to create a sinking

fund to pay for a planned facility expansion. They are going to need $$175,000$ at the end

of month $3,$ $$160,000$ at the end of month $4$ and $$120,000$ at the end of month $6.$

Marinette has been working with $2$ local banks; the following table outlines their current

return on various investments. $($Blanks note that that option is not available at that bank.$)$

Return

Term $($months$)$ Bank $1$ Bank $2$

$10\mathrm{.}87\%0\mathrm{.}87\%$

$21\mathrm{.}83\%1\mathrm{.}92\%$

$32\mathrm{.}52\%$

$43\mathrm{.}90\%3\mathrm{.}82\%$

$55\mathrm{.}41\%$

$66\mathrm{.}55\%7\mathrm{.}20\%$

The $1-$month investments noted in the table above each have a setup fee, Bank $1$ has a

$$400$ fee per investment, Bank $2$ charges $$600.$ This fee is charged at the beginning of

mcdaavet.doc

each investment. Create an Excel model to determine the optimum solution to meet the

required payments.

Show what this looks like in excel.