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    PMT and NPER functions in Excel - Time value of money

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    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.
    Answer: $9,878.71

    Hint: Use the Excel PMT function.

    2. You deposit $5,000 in an account that pays 8% interest per annum. How long will it take to double your money?
    Answer: 9 years
    Hint: Use the Excel NPER function.
    Use the Rule of 72.

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    https://brainmass.com/business/the-time-value-of-money/pmt-and-nper-functions-in-excel-time-value-of-money-459536

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    Time Value of 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 ...

    Solution Summary

    Solves two problems on time value of money using Excel formula (function) with brief explanation.

    $2.19