Create a new Excel workbook with a blank worksheet. Look at the last page of this handout. Type in the information in Column A and Row 2. The Merge & Center and Wrap Text buttons should be useful in formatting the cells. Now start writing the formulas described below. 1. 2. How much would a savings account be worth if the initial balance is $500 and you deposit $50 month for 10 years at an annual interest rate of 3% compounded monthly? (Hint: Use the FV function) Your aunt told you that she will give you $10,000 five years from now. If the current interest rate for an investment is 6.5% per year and interest is compounded quarterly, what is the current value of that money? (Hint: Use the PV function) Financial Functions Lab 2 IS 201 3a. You have won an academic scholarship! The organization is offering to pay you $30,000 five years from now or $25,000 today. You aren't sure which option to take. Let's calculate the second option ($25,000 today). Assume that you can invest the money and earn 3.5% each year compounded monthly. How much will $25,000 given to you today be worth five years from now? 3b. Remember IF statements? Let's mix the IF statement with the financial function that you wrote for question 3a. Using the same data as in question 3a, write a formula that displays "Take the money now!!" or "Wait five years depending on the result of the financial function as compared to $30,000. Don't refer to the result in the cell calculated for question 3a - put the financial function in an IF statement to practice using an IF function with a financial function.