Your friends were excited to hear you have chosen accounting for a career. They have several practical questions regarding money and interest (time value of money). Please assist your friends by...

Extracted text: Your friends were excited to hear you have chosen accounting for a career. They have several practical questions regarding money and interest (time value of money). Please assist your friends by answering their respective questions. For each question: A. Estimate without using a table, calculator, etc. B. Document the "step-by-step" detail showing them how you solved the question. NOTE: To solve use one of the following: • EXCEL Include all the detail steps for whichever tool you choose. For example, if using EXCEL show all formulas (copy so reader could duplicate your work). If using a business calculator, in detail in proper order show numbers and buttons you input to obtain your answer. C. Provide a one to three sentence written explanation to your friend explaining the basic time value of money concept(s) impacting the solution. Friend #4 – Saving for my kids college – I want to help my three kids pay for college. My partner and I have agreed to provide $100,000 to each of our kids. We haven't started saving yet but my kids will be attending college as follows: Kid #1 - Is six years old...assume we have 12 years to accumulate $100,000. How much will I need to put in each month if I earn 6% interest? A. C.


Extracted text: Your friends were excited to hear you have chosen accounting for a career. They have several practical questions regarding money and interest (time value of money). Please assist your friends by answering their respective questions. For each question: A. Estimate without using a table, calculator, etc. B. Document the "step-by-step" detail showing them how you solved the question. NOTE: To solve use one of the following: • EXCEL Include all the detail steps for whichever tool you choose. For example, if using EXCEL show all formulas (copy so reader could duplicate your work). If using a business calculator, in detail in proper order show numbers and buttons you input to obtain your answer. C. Provide a one to three sentence written explanation to your friend explaining the basic time value of money concept(s) impacting the solution. Friend #3 – Home Mortgage Payment – I found my dream house in St. Paul but I am not sure I can afford it? I have the $15,000 for the down payment but it is the monthly payments that I am not sure about? What will my monthly payments be? Selling price: $215,000 Down payment: $15,000 Loan: 30-year $200,000 loan at 6% A.