Solve all the following problems with Excel.

Place all 3 problems in the same workbook. Label each sheet Problem #1, Problem #2, Problem #3, respectively. (Link your work, use financial formulas to solve in Excel) Problem 1 (10 pts)

(a) Assume monthly car payments of $700 per month for 4 years and an annual interest rate of 9% .

1. What initial principal will this repay?

(b) Assume annual car payments of $7000 for 4 years and an interest rate of 8% per year.

1. What initial principal will this repay?

(c) Assume monthly car payments of $550 per month for 4 years and an interest rate of 7% per year.

1. What initial principal will this repay?

2. Prepare a loan payment schedule showing the payments and interest for the life of the loan.

Problem 2 (10 pts) 1. A 10-year mortgage for $200,000 is issued at a 5% annual interest rate.

(a) What is the monthly payment?

(b) How long does it take to pay off the mortgage, if $2,500 per month is paid?

(c) What is the monthly payment if the interest rate is 0.5% per month?

Problem 3 (10 pts) A 10-year bond with a face value of $250,000, stated interest rate of 4% to yield 5%. Interest payments are paid semiannually with a issuance price of $230,513.55.

2 Prepare a bond amortization schedule using the effective interest method. Please note: For all the above please label your work. Work will be graded on accuracy and the utilization of excel throughout your work