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Instructions: Using Financial Formulas in Excel, answer the following problems in a single Excel worksheet. Round to the nearest dollar. You must turn in an Excel document.

6. You owe $20,000 to your parents. You promise to make 8 annual payments of $3,000 to settle your debt. What interest rate are your parents charging (estimated up to 2 decimal places), if you make the 8 annual payments beginning one year from now? Hint use the Financial Function RATE. Note if you need help use the Help on this function feature. This help will include an example for you to follow. 7. You are offered an investment that will pay $12,000 per year for 15 years, beginning one year from now. If you feel that the appropriate discount rate is 1.2%, what is the investment worth to you today? 8. Your grandparents offered you some money via the following options. Assuming an annual interest rate of 12%, which option should you choose? Show your work. a. Receive $10,000 immediately b. Receive $1,000 at the end of each six months for seven years. This results in payments totaling $14,000. You will receive the first check in six months. c. Receive $500 at the end of each year for four years, and then $10,000 at the end of the fifth year. This results in payments totaling $12,000

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