Using an excel workbook (one tab) calculate the following time value of money problems using the PV and FV functions. A few hints are providing for use in the functions: When calculating the PV or FV of a lump sum, the payment will = 0 because there are no periodic, regular payments/deposits being made. When calculating the PVA or FVA (annuity), the payment will equal the period payment or deposit being made. o Whether annual, semi-annual or quarterly, enter the payment/deposit amount, do not divide the payment If you use a minus sign in front of the payment, the end result will appear positive. In the Type box of the function, enter 0 (zero) for omitted. Use input cells for the relevant data for each question.

( can you please attach the excel document: I want to compare it with my answers)

Required:

1. Shontarius wants to have $18,000 in five years to use as a down payment on a house. He currently has $12,500 saved. If Shontarius can earn 8% interest compounded annually, how much will he have in five years? Will Shontarius have enough to put down on a house? (Be sure to answer this question in your assignment).

2. Beth hopes to have $8,000 in four years for a trip to Europe. If Beth earns semi-annual interest at 5% per year, how much does Beth need to deposit today to ensure she has the money for her vacation?

3. Chris and Wendy want to save $35,000 for their daughters college education so they plan to invest $4,200 at the end of each year for the next seven years, earning 4% compounded annually. Will they have saved the amount they wanted? (Be sure to answer this question in your assignment).

4. Damien recently discovered he won a small lottery that will pay him $25,000 per year for the next four years. Assuming an annual interest rate of 3.5% what is the value today?