Question
Use Excel to solve the following questions. Please show the Excel functions you use. 1. Your child will go to college 12 years from now
Use Excel to solve the following questions. Please show the Excel functions you use.
1. Your child will go to college 12 years from now and will require $20,000 at the beginning of each year for four years. How much must you invest at the end of each of the next 12 years to cover the expenses? Assume 10% of interest.
2. If you invest $10,000 today, you would receive $1500 per year for the next 10 years. What is the rate of return on your investment?
3. Suppose you buy a new car with the contract that you pay $500 per month for 3 years. The question is what cash price is equivalent to the financing purchase. Use an annual interest rate of 12%.
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