Use Excel to answer the following questions.
A company’s CEO is receiving $4 million at the end of each of the next 5 years. She can earn 4% per year on her investments. What is the present value of her future revenues?
You are borrowing $160,000 on a 20-year mortgage with an annual interest rate of 11 percent. Assuming end-of-month payments, determine the monthly payment, interest payment each month, and amount paid toward principal each month.
You borrowed some money, went to Vegas and gambled away $50,000. Now this is your liability which you need to pay back in 20 months. The cost of capital is 0.8 percent per month. What amount of money do you need to set aside at the end of each of the next 20 months to meet this liability?