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Answer the following problems in an Excel file. Please upload only one Excel file with all of
your answers. All problems must be solved using the PV and FV functions in Excel. I
1. You need to have \$10,000 to pay for your wedding in 5 years. How much do you need to deposit today in a bank that pays 4% interest, compounded annually, in order to achieve your
goal?
2) You obtain an installment loan to pay for graduate school in the amount of \$30,000. If the
lender charges you 7% interest and you are required to pay the loan off in equal annual
installments over a period of 8 years, what is the amount of each installment?
3) If you place \$4,000 a year in your pension plan and the plan earns 9% per year, how much
will you have available for your retirement in 30 years?
4) You are saving for retirement in 20 years. Today, you place \$100,000 in a bank account that
pays 4% interest, compounded annually, leaving the funds on deposit for the entire 20 years.
You also contribute \$2,000 each year into your pension plan for 10 years, beginning this
year. The pension plan grows at 7% a year. How much do you have available for retirement,
20 years from now? BE CAREFUL; this is a multi-step problem. This one can be tricky