Use Excel to solve the following questions. Please show the Excel functions you use.

1. Periodically automobile firms offer incentives to spur sales. The current one provided by GM, which applies to a $12,000 loan you are considering, provides for 2.9% financing with a 36-month loan. Alternatively, a rebate of $1000 is available. If you take the rebate you would have to finance the remaining $11,000 at an interest rate of 10% for 36 months. Which incentive is worth more to you?

2. Air Atlantic (AA) has been offered a 3-year old jet airliner under a 12-year lease arrangement. The lease requires AA to make annual lease payments of $500,000 at the beginning of each of the next 12 years. Determine the present value of the lease payments if the opportunity cost of funds is 14%.

3. Jackie plans to open her own bookstore in 10 years. To raise the "seed" money, she has committed $10,000 she now has in a mutual fund. In addition, she plans to save $2,000 per year (end of year) for the next 5 years and $3,000 per year (end of year) for the following 5 years. How much "seed" money will Jackie have in 10 years if the investments earn 10% per year compounded annually?