# Future Value - Excel by ocak

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```									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***

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