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What Is a Value

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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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