Please show the answer and the formula. The second picture is an example of what would help me the best. Thank you :)

Date Assigned: Tuesday, June 09, 2020 Date Due: Wednesday, June 10, 2020 before class. No late homework will be accepted. . . Homework 8 Please notice that all work must be shown in a professional way with attention to detail No credit will be given for incomplete or disorderly work Please use a cover sheet stating your name, course number, date due, and homework number Unstapled homework will not be collected as this is part of the assignment All work must be individual with emphasis on numerical accuracy This is an Excel based assignment that must be submitted following the stated guidelines Please notice that late homework (ofter collected by the instructor) will incur into a 25% late fee . . . 1. Problem One: Inlet Manufacturing expects to receive $25,000 at the end of each year, for the next 5 years. The nominal interest rate is 3.75%. As shown in class, (a) use the Annuity Discount Formula to compute the present value of these future cash flows, (b) verify your answer by using the PV function in Excel, (c) if The Federal Reserve decides to lower the nominal interest rate to 3.25%, repeat the computations from part (a), and (b) accounting for the change in interest rate. 2. Problem Two: Tesla Motors expects to receive $1,250,000 at the end of each year, for the next 10 years. The nominal interest rate is 4.25%. As shown in class, (a) use the Annuity Discount Formula to compute the present value of these future cash flows, (b) verify your answer by using the PV function in Excel, (c) if central bank decides to raise the nominal interest rate to 4.75%, how does that impact your answers from part (a), and (b)? B 100 175 2.75% 581.25 12301.653 12301.65 12303.883 1 Exercise One 2 Present Value 3 Time 4 Rate 5 6 Simple Interest Formula 7 8 Daily Compounding Formula 9 Daily Compounding FV Function 10 11 Continuous Compounding 12 13 Exercise Two 14 Future Value 15 Time 16 Rate 17 18 Simple Interest Formula 19 20 Daily Compounding Formula 21 Daily Compounding PV Function 22 23 Continuous Compounding 1000000 150 2.25% 228571.43 34221.678 34221.68 34218.118 1 Exercise One 2 Present Value 3 Time 4 Rate 100 175 0.0275 6 Simple Interest Formula =B2*(1+8483) 8 Daily Compounding Formula =B2*(1+B4/365)*(3*365) 9 Daily Compounding FV Function SFV[84/365,365*83,0,-82) 10 11 Continuous Compounding =B2*EXP(84*83) 12 13 Exercise Two 14 Future Value 1000000 15 Time 150 16 Rate 0.0225 17 18 Simple Interest Formula =B14/(1+B16"815) 19 20 Daily Compounding Formula =B14/(1+B16/365)(15*365) 21 Daily Compounding PV Function =PV1816/365,365*815,0,-814) 22 23 Continuous Compounding =814/EXP(816*815)