History Bookmarks People Window Help x C Chegg Study I Gulded Solution x x Course Content-17SP-FIN-4 x D IP2-Q.pdf lku blackboard.com/bbcswebdavlpid-1388437-dt-content-rid-5397863 2/courses/17SP-FIN-419-BE/IP2-Q.pdf Part C: Using only the Excel functions, please solve the following questions. 1. [Continuous Compoundingl: Compute the FV of$1,900 continuously compounded for: A. 7 years at a stated annual rate of 12% B. 5 years at a stated annual rate of 10% C. 12 years at a stated annual rate of 5% D. 10 years at a stated annual rate of 7% 2. [Interest Rates]: Well-known financial writer Andrew Tobias argues that he can earn 177 percent per year buying wine by the case. Specifically, he assumes that he will consume one $10 bottle of fine Bordeaux per week for the next 12 weeks. He can either pay $10 per week or buy a case of 12 bottles today. If he buys the case, he receives a 10 percent discount and, by doing so, earns the 177 percent. Assume he buys the wine and consumes the first bottle today. Do you agree with his analysis? Do you see a problem with his numbers? 3. [Calculating EAR]: Friendly's Quick Loans, Inc., offers you "three for four or I knock on your door." This means you get $3 today and repay $4 when you get your paycheck in one week (or else). What's the effective annual return Friendlys earns on this lending business? If you were brave enough to ask, what APR would Friendly's say you were paying