These are the 3 questions that had the lowest rate of success on the test. Using excel and formulas,

answer the following questions: and

attached exercise 2 in different excel

Submit your excel file
1. You are planning for an early retirement, starting at age 18 you decide to invest $7,000 per year;
you plan to retire when you accumulate $1,000,000. If the average rate of return on your
investments is 6%, how old will you be when you can retire?
2. You are buying your first house for $250,000, and are paying $60,000 as a down payment. You
have arranged to finance the remaining amount with a 30‐year mortgage with a 6.5% nominal
interest rate and monthly payments. What formula will tell you the equal monthly payments you
must make? Show proof using excel that you used the right formula(s).
a. =PMT(B3/12,B4*12,B2)
b. =PMT(0.00541666,360,190000,0)
c. =PMT(B3,B4,B2)
d. Both A and B
3. You have decided to purchase a house for $225,000 and are evaluating your options for the mortgage.
Assume that your down payment will be 20% of the purchase price, payments will be made monthly,
and the first payment will be made one month from today. If you select the 30‐year mortgage, the
interest rate will be 4.50% annually. What is the total of all payments for each mortgage?