Please complete parts A and B using Excel (see template below in pic 2), explaining the steps and writing out the Excel formulas.

You just won a prize of $5,000 at the local talent show. You can receive the money all up front (t=0), or get a series of monthly or weekly payments as described below. In all cases, your discount rate is 5% APR (annual percentage rate). You may choose to get 39 monthly payments, with the first payment starting 4 months from now. Using an annuity formula, calculate the monthly payment that makes you indifferent between receiving the $5,000 all up front or in monthly installments as described above. This formula should appear in Box 1 on the spreadsheet and give the monthly payment amount. You must check this result by completing the table and summing all the present values of this monthly amount in Sum Column 1; the total of the values in this Column should equal $5,000. b. Across town, your friend has entered a similar contest, but the prize money payout schedule is already set: $135 today, followed by 39 monthly payments that grow this original payout at 3% APR (40 payments in all). Your friend's discount rate is 6% APR. (Assume all compounding is annual). What NPV does your friend receive from the prize? To do this, you must add the first $135 payment to the PV of all 39 of the future payments, determined by using a growing annuity formula. This formula should appear in Box 2 on the spreadsheet. You must check this result by completing the table and summing all the present values of the 40 monthly amounts in Sum Column 2. 5,000 Prize First Installment 135 APR 5% $ - APR 6% $ - 39 Monthly Payments: Delayed start Check PV of this column 40 Monthly Payments; Start Immediately Check PV of this column APR of Prize Growth 3.00% Step 1 =FV of $5,000 prize at t=3 months Step 1 135.00 =PV of "Instantaneous" Payment Box 2 =PV of Monthly Growing Annuity #VALUE! Box 1 ++ Monthly Annuity Step 2 Step 2 TOTAL: Nominal Monthly Monthly Discount Eactor Column 1 PV Nominal Monthly Pmt Monthly Sum Discount Column 2 Factor PV Month Pmt Month 135.00 600 VOUAWNO 0.00 o vou AWN-O 0.00 0.00 0.00 0.00 0.00 0.00 000