Question
FV() is an Excel function that is used for savings situations when you are earning interest. PMT() is an Excel function that is used for
FV() is an Excel function that is used for savings situations when you are earning interest.
PMT() is an Excel function that is used for loan situations when you are paying out interest.
Choose FV() or PMT() to answer questions.
For each of the following, determine which Excel function is appropriate for each problem. Then choose the correct setup for the appropriate function, fill in the information and calculate the answer to the question. Type the answer into the answer spot to find out if you're right or not.
1. Christian decides to buy his wife a new car for her birthday. He purchases her a $45,000 Audi. If he finances the car through the dealership with monthly payments over 5 years and a 2.8% APR, how much will his monthly payment be?
APR= | APR= |
n= | n= |
| Y= | Y= |
| PMT= | P= |
| P= | PMT= |
| FV= |
2. Emily and Steve just had their first baby, Carolyn. They plan to start a college fund with the $2000 Emily's mother gave them. If they find a savings account with an APR of 3.8% and they add $150 to the account every month, how much money will be in the account when Carolyn turns 18?
APR= | APR= |
n= | n= |
| Y= | Y= |
| PMT= | P= |
| P= | PMT= |
| FV= |
3. Jacob can only afford a payment of $500 per month for the new boat he plans to purchase for himself. He qualifies for a 5-year loan with 1.75% APR. What is the maximum purchase price he can afford?
APR= | APR= |
n= | n= |
| Y= | Y= |
| PMT= | P= |
| P= | PMT= |
| FV= |
4. Judy wants to start saving money for a down payment on a house with the $2,500 tax refund she just received. Her goal is to have $20,000 after 2 years of saving. If her savings account has an APR of 1.9% compounded monthly, how much does she need to add to the account each month to accomplish her goal?
APR= | APR= |
n= | n= |
| Y= | Y= |
| PMT= | P= |
| P= | PMT= |
| FV= |
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Answer 1 Principal amount 45000 Time period 5 years Interest rate 28 APR Following table shows the c...
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
