# Excel problems for economics

**Question description**

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?

## Tutor Answer

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors