Consider the following Excel functions to answer Questions 17 – 19:

a. =PV(rate,nper,pmt,[fv],[type])

b. =FV(rate,nper,pmt,[pv],[type])

c. =PMT(rate,nper,pv,[fv],[type])

d. =NPER(rate,pmt, pv,[fv],[type]

e. =RATE(nper,pmt, pv,[fv],[type],[guess])

Show the formula or function and arguments that are necessary to solve each of the following problems. Your answer should work if it were typed, exactly as written, into the spreadsheet. You should not have to perform any calculations.

17. The XYZ Company wants to borrow $500,000 by issuing a 10-year noninterest-bearing note when the market rate of interest for similar loans is 8.5%. The required input to determine how much XYZ will have to repay upon maturity of the note is:

18. Consider the preceding question. If XYZ wants to set aside a certain amount at the end of every year in a fund such that the fund will have accumulated the necessary amount for repayment after 10 years, what input is required to determine the amount that should be set aside each year assuming XYZ can earn a 10% return on its money?

19. ABC Company issued $100,000,000 of 30-year, 4.5% bonds, with interest payable semiannually, at an effective rate of 4.625%. The Excel input to determine the issue price of the bonds is: