Chapter 1, Problem 2IQ

Explanation of Solution

Proficiency level with spreadsheet software:

• Proficiency in spreadsheet software is one of the value added technology skill to the commerce or finance students.
• When working with large amount of data with the manual calculation takes more time to complete the problem but, the spreadsheet software reduces this work...

Explanation of Solution

Works on Excel Function:

• Spreadsheet is used to store, organize, calculate and manipulate the data using functions and formulas.
• Spreadsheet can be treated has a paper ledger sheet.

Example of Spreadsheet to find the future value using “FV()” function:

• Future Value (FV) is nothing but the estimation of investment that made today, how it will be worth in future.
• The FV is predicted using the present value, rate of interest, number of years, and compound periods per year.
• The formula to estimate the value of future value as follows...