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Future Value of an Amount Present amount Number of periods Interest rate per period Future value fx Payment per period Number of periods Interest rate per period Future Value of an Annuity First payment (enter 0 or 1) (0-end of period, 1=now) Future Value B COMPOUND Time Value of Money $500 5 10.0% FORMULA1 $500 5 10.0% 1 с FORMULA3 D Present Value of an Amount Future amount Number of periods Interest rate per period Present value Present Value of an Annuity Payment per period Number of periods Interest rate per period First payment (enter 0 or 1) (0-end of period, 1=now) Present Value E $500 5 10.0% FORMULA2 $500 5 10.0% 0 FORMULA4 F G H J Forr

Future Value of an Amount Present amount Number of periods Interest rate per period Future value fx Payment per period Number of periods Interest rate per period Future Value of an Annuity First payment (enter 0 or 1) (0-end of period, 1=now) Future Value B COMPOUND Time Value of Money $500 5 10.0% FORMULA1 $500 5 10.0% 1 с FORMULA3 D Present Value of an Amount Future amount Number of periods Interest rate per period Present value Present Value of an Annuity Payment per period Number of periods Interest rate per period First payment (enter 0 or 1) (0-end of period, 1=now) Present Value E $500 5 10.0% FORMULA2 $500 5 10.0% 0 FORMULA4 F G H J Forr

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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    For this problem, there are 10 future value and present value exercises to be solved. Review the printout of the worksheet file COMPOUND that follows these requirements. This file also contains a second sheet called the Answer Sheet. Note that the worksheet is divided into four sections. You have to decide which section is appropriate for each exercise.

Open the file COMPOUND from the website for this book at cengagebrain.com. To enter the four formulas in the appropriate cells, use the FV and PV functions for the annuities (see Appendix A in Excel Quick for a discussion of them). Unfortunately Excel does not provide functions for the future value of an amount nor the present value of an amount. Enter the following formulas for FORMULA1 and FORMULA2: FORMULA1: =B6*((1+B8)^B7) FORMULA2: =E6/((1+E8)^AE7) For the annuity calculations (FV and PV), it is important that you enter a value (or cell reference) for type to indicate the timing of the first payment. If the first payment is made today for an annuity, type must be 0. This is known as an annuity due. If the first payment is made at the end of the first period, type is 1. This is known as an ordinary annuity. Enter your name in cell A1. Save the completed worksheet as COMPOUND2. When you have completed the exercises below, print your formulas. Do not print the worksheet. Check figures: The answer sheet at the end of this section provides answers to the first exercise

Home Insert Draw Page Layout Q E10 1 ·234567 Paste Excel File Edit View Insert Format Tools Data Window Help 7 8 V AutoSave OFF X 6 Present amount 9 Future value 10 A Ready Future Value of an Amount Number of periods Interest rate per period Arial BI U ✓ 17 Future Value 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 11 12 Payment per period 13 Number of periods 14 Interest rate per period 15 16 Future Value of an Annuity First payment (enter 0 or 1) (0=end of period, 1=now) fx CU Worksheet B V FORMULA1 Accessibility: Investigate 12 $500 5 10.0% FORMULA3 COMPOUND Time Value of Money $500 5 10.0% 1 Formulas Data Review View Α Α΄ dhehehtaall C v ✓ A ✓ D Present Value of an Amount Future amount Number of periods Interest rate per period Present value Present Value of an Annuity Payment per period Number of periods Interest rate per period First payment (enter 0 or 1) (0=end of period, 1=now) Present Value & E $500 5 10.0% FORMULA2 $500 5 10.0% 0 FORMULA4 COMPOUND - unprotected.xlsx - Shared Tell me Automate ab Wrap Text Merge & Center ✓ F G General MAR 25 H V O % I ←.0 .00 00 0 J (CC Cell Conditional Format Formatting as Table Styles K tv L O i M A DNN Insert v Delete ✓ Format v N O X G Σ*AP* Ov V Sort & Find & Filter Select B P Q W Sat Mar 25 10:07 AM Comments Analyze Data R Aa Share Show ToolPak S + 100% T
Transcribed Image Text:Home Insert Draw Page Layout Q E10 1 ·234567 Paste Excel File Edit View Insert Format Tools Data Window Help 7 8 V AutoSave OFF X 6 Present amount 9 Future value 10 A Ready Future Value of an Amount Number of periods Interest rate per period Arial BI U ✓ 17 Future Value 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 11 12 Payment per period 13 Number of periods 14 Interest rate per period 15 16 Future Value of an Annuity First payment (enter 0 or 1) (0=end of period, 1=now) fx CU Worksheet B V FORMULA1 Accessibility: Investigate 12 $500 5 10.0% FORMULA3 COMPOUND Time Value of Money $500 5 10.0% 1 Formulas Data Review View Α Α΄ dhehehtaall C v ✓ A ✓ D Present Value of an Amount Future amount Number of periods Interest rate per period Present value Present Value of an Annuity Payment per period Number of periods Interest rate per period First payment (enter 0 or 1) (0=end of period, 1=now) Present Value & E $500 5 10.0% FORMULA2 $500 5 10.0% 0 FORMULA4 COMPOUND - unprotected.xlsx - Shared Tell me Automate ab Wrap Text Merge & Center ✓ F G General MAR 25 H V O % I ←.0 .00 00 0 J (CC Cell Conditional Format Formatting as Table Styles K tv L O i M A DNN Insert v Delete ✓ Format v N O X G Σ*AP* Ov V Sort & Find & Filter Select B P Q W Sat Mar 25 10:07 AM Comments Analyze Data R Aa Share Show ToolPak S + 100% T
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