PMT and NPER functions in Excel - Time value of money
Not what you're looking for?
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.
Purchase this Solution
Solution Summary
Solves two problems on time value of money using Excel formula (function) with brief explanation.
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 ...
Purchase this Solution
Free BrainMass Quizzes
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.