CHAPTER 5 - EXCEL EXERCISE (PART 1) You can use the function capability in excel to help solve time value of money problems Using these functions solve for the highlighted sections in the charts below. For the lump sum problems there is no Pmt maount that should just be o Single Lum Sum Problems PY $15,347.83 Number of Periods 10 25 7% 10% FV $25,000.00 $89,000.00 $456,000.00 58,700.00 $225,000.00 $2,500.00 $15,000.00 PMT 0 0 0 0 0 0 15 12 15% 5% $35.000.00 Click on the function button in excel and select what you are trying to solve for (PV, FV. Nper, Rate or FV) Function Arguments PV The next step involves just selecting the proper cells that fit in each section. In order for the formulas to work the PV must always be negative you can either change this in the table or add a negative sign in your formula Rate Nper D - 10 - 25000 Type Returns the present value of an investment une total amount that a series of future payments is worth now Rate it the interest rate per period. For example, ule oka for quarterly payments NAPR. Formularelut 515,34783 OK Cancel CHAPTER 5 - EXCEL EXERCISE (PART 2) In this section we will do the same thing as the previous seciont only we will be solving for annuities. Solve for the highlighted sections in the charts below. For an annuity you need either the PV or the FV, but not both Aunnuity Problems PV $23.16520 Rate Number of Periods 10 25 7% 10% FV NA NA NA $8.700.00 $225,000.00 NA NA NA PMT $2,000.00 $500.00 $1,500.00 $250.00 $2,000.00 15% 5% 15 12 6 $35,000.00 fx Click on the Function button in excel and select what you are trying to solve for (PV, FV, Nper, Rate or FV) function Arguments PV The next step involves just selecting the proper cells that fit in each section. In order for the formulas to work the PV or the FV must always be negative you can either change this in the table or add a negative sign in your formula on 1 10 Rate Niper Pet F Type - 25000 -1534733134 Returns the present value of an investment the total amount that a series of future payments is worth now Rates the interest rate per period. For example, out for quarterly Dents at NAPR Formularest - 515 347.83 ontundin OK Cance