Explore BrainMass
Share

# Time Value of money using excel

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

In the attachment below are questions I am having a hard time figuring out. Can you show your work (formulas) so that I understand how you came to the answers?

© BrainMass Inc. brainmass.com October 25, 2018, 9:58 am ad1c9bdddf

#### Solution Summary

This solution helps solving time value of money problems using excel.

\$2.19

## Time Value of Money: 1. Alan had saved up \$500,000. How much more must he save each year over the next 20 years in order to have a total of \$1 million? Alan earns 5% interest, compounded annually. 2. You deposit \$5,000 in an account that pays 8% interest per annum. How long will it take to double your money?

At each question the solution cell must contain the Excel formula (Function) that produced the answer. - Replace the existing numerical contents.- Also add a brief explanation of how the answer was derived and the significance of the question in understanding the Time Value of Money.

1. Alan had saved up \$500,000. How much more must he save each year over the next 20 years in order to have a
total of \$1 million? Alan earns 5% interest, compounded annually.