Question: Can someone show me the correct excel formula to answer these questions? 12. Your aunt is about to retire, and she wants to sell some

 Can someone show me the correct excel formula to answer these

Can someone show me the correct excel formula to answer these questions?

12. Your aunt is about to retire, and she wants to sell some of her stock and buy an annuity that will provide her with income of $50,000 per year for 30 years, beginning a year from today. The going rate on such annuities is 7.25%. How much would it cost her to buy such an annuity today? Rate Periods Payment Future value Present value Answer 13. What is the PV of an annuity due with 5 payments of $2,500 at an interest rate of 5.5%? Rate Periods Payment Future value Present value Answer 14. What is the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%? Rate Periods Payment Future value Present value Note: it is easier to use the perpetuity formula rather than TVM functions for perpetuities: PV of a perpetuity is the annual cash flow divided by the discount rate (as a decimal)

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