Assume that you have $1,000 to invest, so insert 1000 as your Present Value in the following table. Assume that you want to invest your money for 5 years (insert 5 for Number of Periods). Assume an annual interest rate of 3.00% (insert 3 for Interest Rate per Period). The table will determine the Future Value of your investment. If you input the numbers correctly, your Future Value is computed to be $1.159, which is what your investment will be worth in 5 years. Now revise the input to reflect your actual savings and the prevailing interest rate so that you can see how your savings will grow in 5 years. Even if you have no savings now, you can at least see how the interest rate affects the future value of savings by revising your input in the Interest Rate per Period, and then observing the change in the Future Value.

Future Value of a Present Amount
Present Value					$1,500
Number of Periods					5
Interest Rate per Period					3.0%	FV = PV*(1+R)^N
Future Value					$1,739
2. Assume that you have $1,000 to invest at the end of each of the next 5 years, so insert 1000 as your Payment per Period in the following table. Assume that you want to invest your money for 5 years (insert 5 for Number of Periods). Assume an annual interest rate of 3.00% (insert 3 for Interest Rate per Period). The following table will determine the Future Value of your investment. If you input the numbers correctly, your Future Value is computed to be $5,309, which is what your investments will be worth in 5 years. Now revise the input to reflect your actual expected savings per year over the next 5 years, and existing interest rate quotations so that you can estimate how your savings will grow in 5 years. You can now revise the table to fit your own desired level of saving.
Future Value of an Annuity
Payment per Period					$1,500
Number of Periods					5
Interest Rate per Period					3.0%	FV = FV(R, N, PMT, (PV), beginning=1, end=0)
Future Value					$7,964
3. Assume that you want to deposit savings that will be worth $10,000 in 5 years, so insert 10000 as the Future Amount and 5 as the Number of Periods in the following table. Assume an annual interest rate of 3.00% (insert 3 for Interest Rate per Period). The following table will determine the Present Value, which represents the amount of savings you need today that would accumulate to be worth $10,000 in 5 years. If you input the numbers correctly, the Present Value is estimated in the table to be $8,606. Now revise the input to reflect your own desired savings amount in 5 years so that you can estimate how much you need now to achieve your savings goal in 5 years.
Present Value of a Future Amount
Future Amount					$20,000
Number of Periods					5
Interest Rate per Period					3.0%	PV = FV / (1+R)^N
Present Value					$17,252
4. Assume that you want to deposit savings at the end of each of the next 5 years so that you will have $10,000 in 5 years. So insert 10000 as the Future Amount, and 5 for Number of Periods. Assume an annual interest rate of 3.00% (insert 3 for Interest Rate per Period). The following table will determine the Annual Payment, which represents the annual payments that will accumulate to your future desired investment. If you input the numbers correctly, your Annual Payment is computed to be $1,884. Now revise the input to reflect your own desired savings amount in 5 years so that you can estimate how much you need to save per year to achieve your savings goal in 5 years.
Compute Payment Needed to Achieve Future Amount
Future Amount					$20,000.00
Number of Periods					5.00
Interest Rate per Period					3.00%	PMT = FV / [FV(R, N, -1)]
Annual Payment					$3,767
Decisions
1. Using the above formulas and understanding of the impact of interest rates and time on your savings, report on how much you must save per year and the return you must earn to meet your savings goal for graduation, and your savings goal in your first three years of post-graduation life.