This assignment in Excel using TVM formulas.
A. John just bought a $30,000 car. He put $5,000 down and financed the rest. He got a 5 year loan and his payments are $550 at the end of each month. What is the interest rate on John's loan?
B. Leticia wants to know how much her tuition will be next year if the inflation rate for tuition is 8% and it tuition currently costs $14,000. What would we estimate Leticia's tuition would cost next year?
C. Leticia wants to know how much she will have to put away in the bank today to have enough money to pay her tuition next year. How much would she need to set aside if her bank would pay her 1.2% interest on her money?
D. What would Leticia's tuition cost in 2 years?
E. Barry inherited $40,000 from an Uncle recently. He wants to invest it for his retirement. He estimates he could earn about 7% on his money after fees. He wants to keep the money invested for at least 30 years. What amount will his money grow to in 30 years?
F. What if Barry could reduces his fees by 1% how much would he earn over 30 years then?