You must use MS Excel for these problems.

You must use the formulas in Excel to calculate the answers.

Problem #1: What is the Future Value of an Investment?

Certificate of Deposit Example

Investment amount: $1000 (PV)

Interest Rate: 3.5% annually (divide by 12 to get the monthly rate)

36 months (3 years)

No additional payments will be added to the $1000 invested upfront.

Problem #2: How much will my monthly Payment be?

Automobile Loan Example

Amount of Loan: $10,000 (PV)

Interest Rate: 6% annually

Term of Loan: 48 months (4 years)

Hints:

In Excel, create fields (name and amount) for each variable

Use the Excel formula by having it reference your appropriate amount fields

Don't forget to convert the annual interest rate into monthly by dividing by 12 in the formula