Please Explain and Show the Formulas

- Open a blank Excel workbook (i.e., do not use class exercise template) to perform your calculations. As I said in class, keep a data-entry section and calculation cells separated. - Click "Homework Assignments Ch _" and upload your completed Excel file. No submission will be accepted beyond the deadline. - Your Excel file needs to be named to reflect your name and the assignment number. For example, I may name my file for Assignment \#1 "nishi_hiro_A1." - Format your answers to two decimal places. In each question, highlight the cell of the you answer in yellow (e.g., $812.51,12.35% ). - Solutions will not be presented during the semester. Instead, we will go over some of the key problems in the exam review session(s). Question 3 (2-step problem - Perpetuity) There is an investment that will pay you and your heirs $10,000 each year in perpetuity. If the first payment is to be received in exactly 9 years, how much would you be willing to pay for it today? Assume a 5.0% annual interest rate. ( 2 points) Hint \#1: PV of perpetuity = (annual payment amount )/ (annual interest rate ) Hint \#2: Be sure to draw a time table for you to correctly understand the number of years