Using Excel (show functions/work)

1. USC Physicians invests $42,000 at 8% interest for 5 years. How much would they receive at the end of 5 years? a. 10 years from now?

2. USC Physicians aspire to eventually expand their operations to construct a rheumatology clinic at the end of 7 years. If they want to calculate how much they will need to invest to have a future sum of $2,000,000, at 9% interest what is this amount?

2b. if a similar rheumatology-related clinic investment would require an initial investment of $980,000, should USC Physicians invest?

3. USC Physicians wants to look at other investment options to grow its working capital budget. If a bank presents them with a 6-year investment option of investing $1000 and receiving $2100 at the end of the length of the investment, what is that interest rate?

3b. If a different financial institution offers them another investment option of investing $2000 over a 4-year period and receiving a future value of $3100, what is this interest rate?

3c. Based purely on interest rates, from an interest growth compounding perspective which investment option would you pick?

4. USC Physicians still want to increase their working capital budget despite picking an option from question #3. If they are interested in investing $10,000 and receiving $100,000 in the future at an interest rate of 12%, how many years will this take, assuming you are operating under annual periods? Carry your answer to two decimal places. If the time horizon was 21 years, was the timeline met?

5. If Tiger Hospital has long-term strategic plans to construct an oncology center for $11,000,000 in 5 years at 8% interest, what would be the amount of end of period payments they will need to make into this investment in order to have $11,000,000 at the end of 5 years? If the Board of Trustees' finance committee budgets for these payments to be around $1,600,000, do they like the result?

6. A hospital wants to financially plan for constructing a medical office building in 7 years. How much could they afford for the construction if they are investing $50,000 per period, at the end of each period, at 8% interest?

7. Spine Surgeons R-Us need to buy a new piece of spine equipment and a financial lender agrees to lend them the money at a 2% monthly rate. The loan payments will be $2,600 for the next 18 months, and at the end of each month. What is the purchase price of the equipment?

8. Bond X is a 12-year $2000 par value bond with a coupon rate of 10%. If interest rates dip, after 2 years, to 8%, what is the current value of the bond?