Excel problems for economics
On Excel, demonstrate that you can solve for PV, FV, PMT, and IRR.
1. What is the FV of an investment of $10,000 which pays 7% interest, compounded monthly, for five years? What is the FV is it’s compounded semi-annually for 5 years?
2. What is the monthly payment for a $800,000 mortgage for the first 119 payments that is due in 10 years, has a 25 year amortization, at 5% interest? What is the amount of the 120th payment?
3. What is the IRR of a $10,000 investment which pays $500 end of year 1, $0 end of year 2, $800 end of year 3, $900 end of year 4 and $10,600 at the end of year 5?
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