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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.

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?
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.

\$2.19