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(Solved) Time Value on Excel (Using the Financial Function (fx) Wizard) Clink links below: Future Value Present Value Future Value of an Annuity Future Value

The purpose of this assignment is to allow the students to understand and practice the measurement of present value, future value, and interest rate using MicrosoftÂ® ExcelÂ®.

Assignment Steps

Resources: MicrosoftÂ® OfficeÂ® 2013 Accessibility Tutorials, MicrosoftÂ® ExcelÂ®, Time Value of Money Calculations Template

Calculate the following time value of money problems using MicrosoftÂ® ExcelÂ®:

If we place $8,592.00 in a savings account paying 7.5 percent interest compounded annually, how much will our account accrue to in 9.5 years?

Please put answer on the provided excel template. Thanks. SET PRICE $5

Time Value on Excel (Using the Financial Function (fx) Wizard)

Clink links below:

Future Value

Present Value

Future Value of an Annuity

Future Value of an Annuity Due

Present Value of an Annuity

Present Value of an Annuity Due

Unequal Cash Flows Time Value on Excel (Using the Financial Function (fx) Wizard)

Future Value: =FV() If I deposit $100 into an account earning 10% per year, how much will my deposit be

worth after 5 years?

PV : $ I: (100.00)

10.00% n: 5 FV? $ 161.05 What if we had the same problem but interest is compounded monthly?

PV : $ (100.00) I: 0.83% n: 60 FV? $ 164.53 *** Note: Change values in 'PV' 'I' and 'n' to solve for FV *** Time Value on Excel (Using the Financial Function (fx) Wizard)

Present Value: =PV() How much would I need to deposit today in an account earning 10% per year in order to

accumulate $10,000 after 5 years?

FV : $ I: (10,000.00)

10.00% n: 5 PV? $ 6,209.21 What if my interest was compounded monthly?

FV : $ (10,000.00) I: 0.83% n: 60 PV? $ 6,077.89 *** Note: Change values in 'FV' 'I' and 'n' to solve for PV *** Time Value on Excel (Using the Financial Function (fx) Wizard) Return Future Value of an Annuity: =FV() How much would I have in my retirement account if I deposited $2000 each year for 35 years and I earned 10% on

my savings? What about $4,000?

PMT : $ (2,000.00) PMT : I: 10.00% I: 10.00% n: 35 n: 35 FVA? $ 542,048.74 $ (4,000.00) FVA? $ 1,084,097.47 Instead, what if I made monthly deposits of $166.67? How about monthly deposits of $333.33?

PMT :

I:

n:

FVA? $ (166.67) PMT : 0.83% I: 420 n:

$ 632,785.66 *** Note: Change values in 'PMT' 'I' and 'n' to solve for FVA *** FVA? $ (333.33)

0.83%

420

$ 1,238,851.38 Time Value on Excel (Using the Financial Function (fx) Wizard) Return Future Value of an Annuity Due: =FV() How much would I have in my retirement account if I deposited $2000 at the beginning of each year for 35 years and I

earned 10% on my savings? What about $4,000?

PMT : $ (2,000.00) PMT : $ (4,000.00) I: 10.00% I: 10.00% n: 35 n: 35 FVA? $ 542,048.74 FVA? $ 1,084,097.47 FVAD? $ 596,253.61 FVAD? $ 1,192,507.22 Instead, what if I made beginning of the month deposits of $166.67? How about monthly deposits of $333.33?

PMT :

I:

n: $ (166.67) PMT : 0.83% I: 420 n: $ (333.33)

0.83%

420 FVA? $ 632,785.66 FVA? $ 1,238,851.38 FVAD? $ 638,058.88 FVAD? $ 1,249,089.82 *** Note: Change values in 'PMT' 'I' and 'n' to solve for FVA *** Time Value on Excel (Using the Financial Function (fx) Wizard) Return Present Value of an Annuity: =PV() How much could I afford to borrow for a home if I can make monthly payments of $12,000 per year for 30 years at

8%? What about monthly payment of $1,000?

PMT : $ (12,000.00) PMT : I: 8.00% I: n: 30 n: PVA? $ 135,093.40 PVA? $ (1,000.00)

0.67%

360

$ What if I wanted to know what my montlhy payments would be a $20,000 car loan over five years at 8%?

PMT : $ (20,000.00) I: 0.67% n: 60 PVA? $ 405.53 *** Note: Change values in 'PMT' 'I' and 'n' to solve for PVA *** 136,283.49 Time Value on Excel (Using the Financial Function (fx) Wizard) Return Present Value of an Annuity Due: =PV() How much could I afford to borrow for a home if I can make annual payments of $12,000 per year for 30 years at 8%?

What about monthly payment of $1,000?

PMT : $ (12,000.00) PMT : I: 8.00% I: n: 30 n: $ (1,000.00)

0.67%

360 PVA? $ 135,093.40 PVA? $ 136,283.49 PVAD? $ 145,900.87 PVAD? $ 137,192.05 What if I wanted to know what my montlhy payments would be a $20,000 car loan over five years at 8%?

PMT : $ (20,000.00) I: 0.67% n: 60 PVA? $ 405.53 PVAD? $ 402.84 *** Note: Change values in 'PMT' 'I' and 'n' to solve for PVA *** Time Value on Excel (Using the Financial Function (fx) Wizard)

Unequal Cash Flows:

a) Present Value

How much must I deposit today to receive $100 in year 1,$ 200 in year 2, $300

in year 3, and $400 in year four if I can earn 10% on my deposits?

PVIF at

Year

FV 10% PV of CFn 1 $ 100 0.90909 $ 90.91 2 $ 200 0.82645 $ 165.29 3 $ 300 0.75131 $ 225.39 4 $ 400 0.68301 $ 273.21 $ 754.80 Present Value of Unequal Cash Flows

b) Future Value What will my bank account be worth if I deposit $100 in year 1, $200 in year 2,

$300 in year 3 and $400 in year 4 if I can earn 10% on my deposits?

FVIF at

Year FV 10% FV of CFn 1 $ 100 1.10000 $ 110.00 2 $ 200 1.21000 $ 242.00 3 $ 300 1.33100 $ 399.30 4 $ 400 1.46410 $ 585.64 $ 1,336.94 Future Value of Unequal Cash Flows ***Note: Change values of any variable to view changes***

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