Use PMT function of Excel to answer question 1:

1. You are thinking of borrowing $50,000 to start a small business. Use Internet to research and find the lowest interest rate on $50,000 loan (show the rates of at least three banks). Take a picture or snap shot of the rates you found and the name of the banks and upload it to Canvas. Make sure you name the uploaded file(s) as interest rate on 50K loan.

a) After choosing the lowest rate, assume you want to pay off the loan in 5 years, what would be your monthly payment at the end of each month?

Use NPER function to answer part b:

b) For this part, assume you only are able to pay $300 per month at the end of each month to the bank, how many months will it take to pay off the loan?

Use Future Value function of Excel to answer question 2:

2. Assume upon graduation from high school you received a total of $50,000 from your generous relatives as a gift. It has been sitting in your checking account not earning much interest.

a) Use Internet to find at least 3 banks that are federally insured and find the best annual interest rate for your investment of $50,000. Make a snap shot or picture of the interest rates you researched and the name of the banks and decide on the best interest rate and then upload the picture(s) of all three rates and bank names to Canvas. Name your file: Interest rate on 50K investment

b) What would the future value of your investment be after 4 years using the interest rate you found in part a of question 2? What about after 6 years? What about after 10 years? Also, assume you will not add any other amount to the account and will not withdraw from the account during the investment period.

c) Now assume you are able to add $200 at the end of each month to your investment for the next 4 years. What would be the future value of your investment at the end of the four years using the interest rate in part (a) of question 2?