Docstoc

Future Value - Excel

Document Sample
Future Value - Excel Powered By Docstoc
					Time Value on Excel (Using the Function (fx) Wizard)
note: click on the cell next to the question mark to see the formula.

Future Value: If I deposit $100 in an account earning 10% per year, how much will my deposit be worth after 5 years? PV I n FV? $ (100.00) 10.00% 5 $161.05

What if we had the same problem but interest is compounded monthly? PV I n FV? $ (100.00) 0.83% 60 $164.53

***Note: Change the values of any variable other than that being solved for to view changes***

Time Value on Excel (Using the Function (fx) Wizard)
note: click on the cell next to the question mark to see the formula.

Present Value: 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 n PV? $(10,000.00) 10.00% 5 $6,209.21

What if my interest was compounded monthly? FV I n PV? $(10,000.00) 0.83% 60 $6,077.89

***Note: Change the values of any variable other than that being solved for to view changes***

Time Value on Excel (Using the Function (fx) Wizard)
note: click on the cell next to the question mark to see the formula.

Future Value of an Annuity: 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 I n FVA? $ (2,000.00) 10.00% 35 $542,048.74 PMT I n FVA? $ (4,000.00) 10.00% 35 $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) 0.83% 420 $632,785.66 PMT I n FVA? $ (333.33) 0.83% 420 $1,238,851.38

***Note: Change the values of any variable other than that being solved for to view changes***

Time Value on Excel (Using the Function (fx) Wizard)
note: click on the cell next to the question mark to see the formula.

Future Value of an Annuity Due: 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 I n FVA? FVAD? $ (2,000.00) 10.00% 35 $542,048.74 $596,253.61 PMT I n FVA? FVAD? $ (4,000.00) 10.00% 35 $1,084,097.47 $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 FVA? FVAD? $ (166.67) 0.83% 420 $632,785.66 $638,058.88 PMT I n FVA? FVAD? $ (333.33) 0.83% 420 $1,238,851.38 $1,249,089.82

***Note: Change the values of any variable other than that being solved for to view changes***

posits of $333.33?

Time Value on Excel (Using the Function (fx) Wizard)
note: click on the cell next to the question mark to see the formula.

Present Value of an Annuity: 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 I n PVA? $ 12,000.00 8.00% 30 ($135,093.40) PMT I n PVA? $ 1,000.00 0.67% 360 ($136,283.49)

What if I wanted to know what my montlhy payments would be a $20,000 car loan over five years at 8%? PV I n PVA? $ 20,000.00 0.67% 60 ($405.53)

***Note: Change the values of any variable other than that being solved for to view changes***

Time Value on Excel (Using the Function (fx) Wizard)
note: click on the cell next to the question mark to see the formula.

Present Value of an Annuity: 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 I n PVA? PVAD? $ 12,000.00 8.00% 30 ($135,093.40) ($145,900.87) PMT I n PVA? PVAD? $ 1,000.00 0.67% 360 ($136,283.49) ($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%? PV I n PVA? PVAD? $ 20,000.00 0.67% 60 ($405.53) ($402.84)

***Note: Change the values of any variable other than that being solved for to view changes***

Time Value on Excel (Using the Function (fx) Wizard)
note: click on the cell next to the question mark to see the formula.

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 10% PV of CFn 0.90909 $ 90.91 0.82645 165.29 0.75131 225.39 0.68301 273.21 $ 754.80

Year 1 $ 2 3 4

FV 100 200 300 400

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 Future Value of Unequal Cash Flows $ 1,336.94

***Note: Change the values of any variable other than that being solved for to view changes***


				
DOCUMENT INFO
Shared By:
Stats:
views:437
posted:1/14/2008
language:English
pages:8