PMT and NPER functions in Excel - 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 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.
Solution Preview
See the attached file. Thanks
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.
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a. Interest is compounded semiannually
b. Int
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4-3 Your parents will retire in 18 years. They currently have $250,000 and they t
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A. 2.79%
B. 3.10%
C. 3.44%
D. 3.79%
E. 4.17%
I need to build an Excel spreadsheet for the calculations in the chart. The spreadsheet must include Excel formulas used (I have listed the Excel formulas- I am having a hard time plugging them in to the spreadsheet). I would also like the detailed formulas written out so that I can plug them in for later practice and understa
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3. Calculate the present value of a lump sum payment with the
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Calculate the current yield on a bond that has the following characteristics:
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Calculate the Yield to Matu
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3. What is t
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