Question 1 (25 marks) Design an Excel financial model that can help to answer the following parts (part 1 - 3). 5 marks will be allocated for the presentation and clarity of your model (e.g., if there are clear headings, clear arrangement for input cells, appropriate use of colors, have some degree of flexibility, generate warning messages for wrong user inputs, etc.).

Part 1.

Your uncle has just announced that he is going to give you $8,000 per year at the end of each of the next 4 years. a. (2 marks) If the relevant interest rate is 8%, what is the value today of this promise? b. (2 marks) If the interest rate changes to 7%, what is the value today of this promise? c. (2 marks) Explain how interest rates influence the value of the promise in parts (a) and (b).

How do you complete this question in Excel format? As in all calculations performed and shown in excel?