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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 $ (100.00) I 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 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 $(10,000.00) I 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 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 $ (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 Instead, what if I made monthly deposits of $166.67? How about monthly deposits of $333.33? PMT $ (166.67) PMT $ (333.33) I 0.83% I 0.83% n 420 n 420 FVA? $632,785.66 FVA? $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 $ (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 $ (166.67) PMT $ (333.33) I 0.83% I 0.83% n 420 n 420 FVA? $632,785.66 FVA? $1,238,851.38 FVAD? $638,058.88 FVAD? $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 $ 12,000.00 PMT $ 1,000.00 I 8.00% I 0.67% n 30 n 360 PVA? ($135,093.40) PVA? ($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 $ 20,000.00 I 0.67% n 60 PVA? ($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 $ 12,000.00 PMT $ 1,000.00 I 8.00% I 0.67% n 30 n 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%? PV $ 20,000.00 I 0.67% n 60 PVA? ($405.53) PVAD? ($402.84) ***Note: Change the values of any variable other than that being solved for to view changes***

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posted: | 7/9/2010 |

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What Is a Value document sample

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