Use the financial functions available in Excel to solve the time value problems below. Make sure that your spreadsheet prominently displays the requested answers.

1.How much will you have in 7 years if you invest $2,000 per year, starting at the end of this year, if you can earn 10% per year?

2.Suppose your rich aunt has left you a trust fund in which you receive $7,500 per year (starting in one year) for 10 years. If you can invest your money such that it earns 8% per year, how much would you choose to accept as a lump sum received right now in exchange for the 10 payments?

3.if you purchase a house for $250,000, pay a $25,000 down payment, and carry the balance on a 15-year mortgage, what is your monthly payment if you are charged an interest rate of 5%?

4.If you were to pay $50,000 right now for an investment promising to pay you $4,000 per year for 5 years (at end of each year), and $40,000 at the end of 5 years, what interest rate would you be expecting to earn?

5.You are considering two investments with the following cash flows. Which investment do you prefer if the discount rate is 11%?

Investment	Year 1	Year 2	Year3	Year 4	year 5
A	$50,000	$40,000	$30,000	$20,000	$10,000
B	$10,000	$25,000	$30,000	$40,000	$50,000

6.You want to retire in 25 years and have enough money to provide for a $110,000 yearly income over a retirement period of 35 years. In this case, a timeline might be too big to create. Instead, set this up in Excel using the text examples.

a.How much do you need at retirement to fund a $110,000 annual income?

b. What annual amount must you invest each year until you retire to provide this amount? In both the pre-retirement and retirement periods, you expect to earn an average of 6% on investments.