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Problem 27 and 29. Can EXCEL solve this problem, if so what is the formula? Show all work.

THE TIME VALUE OF MONEY 107 26. (Amortization) Sam has an outstanding balance of $7,050 on his credit card. Due to financial constraints, he plans to make the $125 minimum monthly payment. His annual interest rate is 13.5%. How long will it take him to payoff the credit card? What will be his balance after making 4.5 years of monthly payments? 27. (Amortization) Sam has an outstanding balance of $2,050 on his credit card. Due to financial constraints, he plans to make the $25 minimum monthly payment. His annual interest rate is 10.5%. How long will it take him to payoff the credit card? What will be his balance after making 4.5 years of monthly payments? 28. (Perpetuity) A consol is a financial security that pays in perpetuity. How much would you be willing to pay for a consol that pays $50 monthly, if the monthly interest rate is 19%? 29. (Perpetuity) How much would you be willing to pay for a consol that pays $230 monthly, if the monthly interest rate is 2%? 30 (Perpetuity) What is the annual rate of return on a perpetuity that costs $500,000 and pays $1,000 monthly? 31. (Perpetuity) what is the annual rate of return on a perpetuity that costs $500,000 and pays$2,000 monthly

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