2A.2 Excel Function

Identify and apply the appropriate Excel formula to calculate each of the follow and show the correct answer:

1. How much will my retirement fund be worth if I deposit $100 per month and my employer matches that amount? My fund earns 12% interest per year, and I will retire in 30 years.
2. I currently have a 30-year mortgage on my house of $200,000. I have an interest rate of 6%. However, I plan to increase my payment to $2,000 per month so that I can pay it off faster. How many months will it take me to pay off this loan?
3. You want to purchase a motorcycle. It costs $8,000 and you can finance it for 4 years through your credit union at 8% interest. What is your monthly payment?
4. Your wealthy grandfather is going to give you a lump sum of money that if invested over 20 years at 10% compounded quarterly, will yield $250,000. What is the amount that he will give you today?
5. What interest rate would I need to make to have my account grow from $2,500 to $5,000 in 5 years?
6. You have just purchased a new car for $18,000 total (including tax, license and fees). You have financed your car through the credit union for 7% APR for 5 years. What is your monthly payment?
7. You want to have $20,000 in the bank in 4 years to purchase a fancy new car. Your account will earn 8% compounded monthly. How much do you need to deposit each month to have the required amount?
8. Using the information in problem #7, how much would your deposit need to be if you could get only a 5% interest rate?
9. If you have $20,000 in your investment account, and it makes 9% per year, how much can you withdraw each month to pay your rent if you need the money to last for 4 years while you are in school?
10. How much can I spend on a new home if my payment is $1,000 / month and the loan is for 30 years at 5%?
11. How much would I have to put into my son's College Fund today to allow him to have $40,000 at the time he starts college? He is 2 years old and will start college when he turns 18. The fund will earn 6% compounded annually.
12. How much will my house be worth in 20 years? The current appraisal is $180,000 and inflation will cause it to increase in value at 3% per year.
13. How many years do I have to work and contribute to my retirement fund, if I can put $350 / month into my account and it grows at 10%? I will need $1,000,000 in my account to retire. Round to nearest year.
14. I have $4,000 in my account. I will add $100 per month. It pays 7% interest compounded monthly. How much will I have after 7 years?