Question

PART 2 - HOMEWORK 3 - Time Value of Money (30 pts)
Please use Excel to answer the following questions. Print an Excel spreadsheet that presents your answers to these TVM questions and also print the formula sheet that shows how you calculated your answers.
1		Calculate the present value of 120 monthly payments of $300 at an annual
		rate of 8%. The payments are made at the end of each month.
2		You are financing a new car with a 3 year loan at 5% annual interest, compounded
		monthly. The amount you are borrowing is $16,000. What are your monthly payments?
3		What is the maximum you can borrow if you can only afford a monthly payment
		of $200?   The interest rate is 5%. The term is three years.
4		If you deposit $5,000 in a savings account that pays 8% annual interest compounded
		monthly, and make no other deposits to the account, how much will you have
		after 5 years?
5		In addition to the $5,000 as specified in the above problem, how much will you
		have at the end of 5 years if you also deposit an additional $300 at the end of
		each month for the entire 5 year period?
6		In addition to the $5,000 as specified in above problem #4, how much will you
		have at the end of 5 years if you also deposit an additional $300 at the beginning
		of each month for the entire 5 year period?
7		You will be making payments every quarter on a $100,000 loan. The interest rate
		is 8%. How much are your payments if you plan on paying off the loan in 5 years?
8		Calculate the future value of 120 monthly payments of $1,000 at an annual
		rate of 12%. The payments are made at the beginning of each month.
9		In five years we need $225,000. How much do we deposit today if the annual
		interest rate is 5%, compounded annually?
10		In five years we need $225,000. How much do we deposit today if the annual
		interest rate is 5%, compounded daily?

Answer 1

EXCEL FORMULA:

Note: Post the rest of the questions separately