Using EXCEL, build a spreadsheet model for each of the following time-value-of-money problems. On your spreadsheet, you will calculate the solution to each problem in two equivalent ways:

(1) Using the time-value-of-money mathematical formula

(2) Using the EXCEL time-value-of-money function

You must use cell referencing and formulas in your spreadsheet. All of your numbers must have no more than 2 decimal places. All of your work must be your own no sharing of spreadsheets.

For each problem, you will have three sections in your spreadsheet. The first section lists the name of each input and the corresponding numerical amount. The second section is the calculation using the mathematical formula, and the third section is the calculation using the EXCEL function.

Problems:

(1) What is the present value amount that is equivalent to $100 received at the end of 5 years, given a discount rate of 16% (compounded annually)?

(2) What is the present value amount that is equivalent to $100 received at the end of each year for 8 years, given a discount rate of 20%?

(3) Find the future value in 2 years of $100 that is deposited today in an account, which pays 12% compounded monthly.