Instruction: For the following questions, with the help of the formulas learnt in topic 1 and 2, you are to use excel and calculate:

1.You plan to borrow $15,000 for a 10-year term, at 15% simple interest per annum. Calculate the interest charges for each of the years and the accumulated amount at the end of each year in excel using tables.

(3 marks)

2.You plan to borrow $15,000 for a 10-year term, at 15% compound interest per annum. Calculate the interest charges for each of the years and the accumulated amount at the end of each year in excel using tables.

(3 marks)

3.An investor deposits $20,000 into a savings account for 2 years that earns 4% annual interest, compounded monthly. Calculate the interest charges for each of the period and the accumulated amount at the end of each period in excel using tables.

(3 marks)

4.Find the future value of an annuity, that pays $25,000 at the end of each year for 11 years at 9%, using excel.

(3 marks)

5.Calculate the present value of an annuity, that pays $5,000 per year for 8 years at 5 percent assuming that the first payment is made after 2 years, using excel.

(3 marks)

USE THE SIMPLE INTEREST FORMULA