This assignment consists of Time Value of Money questions meant primarily to test your proficiency in using Excel to obtain the correct solutions. Working through these questions will also, however, provide additional practice with identifying the proper inputs (PV, FV, etc.) needed to get the answers (Which variables is the question providing? Do they need to be converted based, for example, on the number of compounding periods? What is the variable that needs to be solved for?) Utilize this assignment as another resource to prepare for the first exam.

There are 12 questions on the next sheet of this workbook. For each question, the correct solution figure is given to you in a cell highlighted in gray. Your task is to create a formula using an Excel function in the answer cell highlighted in yellow that results in the same, correct, figure. You must use an Excel function to get the answer. Functions may include pv, fv, pmt, npv, nper, rate, effect, nominal, average, stdev, etc.

You do not have to use cell references to solve these problems, like you do for the lab Excel project questions. You can simply type the figures into your formula. For questions that provide a table of figures, it would however be most efficient to use cell references for those. For other questions, if you would like to use cell references you can simply type the relevant figures into separate cells below or to the right of the word problem and then reference those cells in your formula.

Question 3	A privately run, for-profit, prison is considering ways in which it can cut its monthly costs and therefore increase profit.
	One idea it is considering is to pay a judge to guarantee convicted prisoners in poor health win their appeals and are set free.
$49,701	The prison believes it can realize the monthly cost savings below over the initial year of the plan. What is the present
4 points	value of the first year's monthly cost savings? Assume a discount rate of 8%.
					Month	Savings ($)
					1	3,500
					2	6,000
					3	6,500
					4	9,000
					5	9,000
					6	9,000
					7	9,400
					8	9,800
					9	4,800
					10	5,000
					11	2,000
					12	3,500
					Total	77,500