Finance for Engineers - Can some please answer the questions below: Start with a new Excel file and answer each question on a separate sheet within your file. You will have 5 sheets in your file. Please make sure you use cell references wherever appropriate (everywhere possible). As in the example Excel file and Excel video files on Moodle, list the model inputs (the information provided in the question) at the top, perhaps showing the numbers entered in a different color; type in the input numbers based on the information given. Once you start working on developing your model below the inputs, you should NOT be typing any numbers or answers in your cells; instead all cells should include cell references and Excel functions wherever possible. DO NOT use discount factors within your Excel file; use Excel functions whenever you need to compute a future value or present value. Perform all of your calculations directly in the Excel cells; do not calculate anything outside of Excel; Excel functions you may need to use: PV, FV, PMT, RATE, NPER, NPV, and IRR. Some Question 1 You are considering purchasing a car in 4 years, anticipating a purchase price of $40,000. (Note: This question doesnt require a written answer, but you need to clearly indicate your answers to parts a, b, and c.) a. How much do you need to deposit in an account today, if you want to have $40,000 in the account in 4 years, assuming the account earns 5% annual interest rate? (assume annual compounding) b. If you deposit $30,000 in the account today, what rate of interest would you need to earn annually in order to have exactly $40,000 in the account in 4 years? (assume annual compounding) c. If your account earns 0.25% of interest every month, and if you make an initial deposit of $10,000 today, how much do you need to deposit every month in your account in order to have exactly $40,000 in 4 years? (assume monthly compounding)Page 2 of 3

Question 2 Note: This question is a little more complex than the previous one, and will require you compute your answer in 2 stages. You plan on retiring in 25 years. In order to increase your retirement income, you open a retirement account today, and make a $20,000 deposit. In addition, you will deposit $5,000 every year for the next 25 years. Your plan is to start making annual withdrawals of $50,000 from the account, after you retire. Assuming the account is earning 7% rate of interest, how many years will it take, after you retire, before the funds in your account are completely exhausted? Please include a written answer in a text box. (assume annual compounding)

Question 3 You are planning on buying a new house, and want to make sure you can afford the monthly payments. The house you picked will necessitate you borrow $300,000. You think you can get the following mortgage terms: borrow $300,000 at a fixed quoted (nominal) annual rate of 3.775%; to be paid off in equal monthly payments over 15 years. Compute the required monthly payment, and prepare an amortization table, showing for each month the beginning balance, payment, payment applied to interest, payment applied to principal, and ending balance. (assume monthly compounding) (Note: This question doesnt require a written answer.)