Microsoft® Office Excel® 2007: Data Analysis and Business Modeling, Second Edition

Chapter 9. More Excel Financial Functions

• You are buying a copier. Would you rather pay $11,000 today or $3,000 a year for five years?

• If at the end of each of the next 40 years I invest $2,000 a year towards my retirement, and earn 8 percent a year on my investments, how much will I have when I retire?

• I am borrowing $10,000 for 10 months with an annual interest rate of 8 percent. What are my monthly payments? How much principal and interest am I paying each month?

• I want to borrow $80,000 and make monthly payments for 10 years. The maximum monthly payment I can afford is $1,000. What is the maximum interest rate I can afford?

• If I borrow $100,000 at 8 percent interest and make payments of $10,000 per year, how many years will it take me to pay ...