Use Excel to solve the following problems
i. You invest $ 5,000.00 8 years ago, and it is now $ 8,450.00. What is your annual compounded interest rate? (6.779).
ii. You deposit $ 4,500.00 in a bank earning 10% monthly compounded interest rate, how much will you have in 8 years?
iii. You deposit $25,000.00 in a deposit taking institution some time ago, earning 6% monthly compounded interest. It has grown to $ 48,500.00. How many years it took the money to grow to this level?
iv. Suppose you wind a lottery ticket which pays you $ 250,000.00 after tax. You would like to use some of this money to pay for your child's educational expenses for the next 6 years.
The educational expenses will be $ 25,000.00 per year for the next 6 years. If the annual compounding interest is 6%, how much do you need to deposit today to be able to cover the expenses for your child in the next 6 years (assuming that you will pay for all expenses once a year, i.e., this is an annuity)?