Solve each problem using Excel. Show both the solution and the formula you used by putting an apostrophe in front of the equals sign. (Note: There is no template for this assignment. This assignment does not require that you understand the mechanics of the investment instruments. We will discuss investments later in the semester.)

1. How much will an organization have in five years if it invests $8,500 in a certificate of deposit (CD) account with a 2.60% annual interest rate, compounded:

1. Monthly

1. Daily

1. How much must an organization invest in a mutual fund today in order to sell its shares for $50,000 in four years, assuming the average annual market return will be 4.30%, compounded biweekly (i.e., every two weeks)?

1. An organization plans to save $7,750 per month for a new building. The organization also will invest $12,000 it already has in reserves. (Hint: When a problem involves monthly payments, assume monthly compounding.)

1. What annual rate of return must the organization earn in order to accumulate $525,000 at the end of five years?

1. If the organization can only earn an annual rate of 1.85%, how many years will it need to accumulate $525,000?
   1. If the college deposits $11,500 into the scholarship fund on the first day of each month, how much money will be in the fund in 15 years?

1. A small, private college is starting a scholarship fund. The college's fund managers expect the investments in the fund will earn an average annual return of 6.00%.

1. After those 15 years have passed, how much in scholarship money can the college pay out on the first of each month for the next 20 years? (Assume the college will cease deposits into the fund.)

1. An organization plans to take out a $375,000, 30-year mortgage with a 4.50% annual interest rate. The organization finds out it has the option of paying $19,800 in upfront fees to reduce the mortgage's annual interest rate to 3.85%. The organization can earn an annual return of 2.25% on any money it saves.

1. Ignoring the upfront fees for now, how much will the organization save each month by choosing the option with the lower annual interest rate? (Hint: Mortgage payments are monthly cash outflows.)

1. The organization decides to pay the upfront fees in order to have a lower annual interest rate. How many years will it take the organization to recover the upfront fees? (Hint: Treat the savings as a monthly cash inflow.)

1. How much money will the organization save in total (in today's dollars) over the next 30 years?