Exam 1 Excel portion.Name:___________________________________________

1. The future value of $3,00 eight years from now at 7 percent.

What are you solving for?_______________________

Listvariables:

Nper (N) =

Rate (I)=

Present Value (PV)=

Payment (PMT)=

Future Value (FV)=

Answer: _____________________________

2.. The future value of $10,000 saved each year for 10 years at 8 percent.

What are you solving for?_______________________

Listvariables:

Nper (N) =

Rate (I)=

Present Value (PV)=

Payment (PMT)=

Future Value (FV)=

Answer: _____________________________

3.. The amount a person would have to deposit today at a 6 percent interest rate to have

$20,000 ten years from now.

What are you solving for?_______________________

Listvariables:

Nper (N) =

Rate (I)=

Present Value (PV)=

Payment (PMT)=

Future Value (FV)=

Answer: _____________________________

4. The amount a person would have to deposit today to be able to take out $500 a year for 12 years from an account earning 8 percent.

What are you solving for?_______________________

Listvariables:

Nper (N) =

Rate (I)=

Present Value (PV)=

Payment (PMT)=

Future Value (FV)=

Answer: _____________________________

5. If you desire to have $120,000 for a down payment for a house in eight years, what amount would you need to deposit today?Assume that your money will earn 5 percent.

What are you solving for?_______________________

Listvariables:

Nper (N) =

Rate (I)=

Present Value (PV)=

Payment (PMT)=

Future Value (FV)=

Answer: _____________________________

6.Pete Morton is planning to go to graduate school in a program of study that will take three years.Pete wants to have $15,000 available each year for various school and living expenses.If he earns 4 percent on his money, how much must be deposit at the start of his studies to be able to withdraw $10,000 a year for three years?

What are you solving for?_______________________

Listvariables:

Nper (N) =

Rate (I)=

Present Value (PV)=

Payment (PMT)=

Future Value (FV)=

Answer: _____________________________

7.Carla Lopez deposits $3,000 a year into her retirement account.If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?

What are you solving for?_______________________

Listvariables:

Nper (N) =

Rate (I)=

Present Value (PV)=

Payment (PMT)=

Future Value (FV)=

Answer: _____________________________

8.If a person spends $10 a week on coffee (assume $500 a year), what would be the future value of that amount over

10 years if the funds were deposited in an account earning 4 percent?

What are you solving for?_______________________

Listvariables:

Nper (N) =

Rate (I)=

Present Value (PV)=

Payment (PMT)=

Future Value (FV)=

Answer: _____________________________

9. You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal?

What are you solving for?_______________________

Listvariables:

Nper (N) =

Rate (I)=

Present Value (PV)=

Payment (PMT)=

Future Value (FV)=

Answer: _____________________________

10. Taylor is considering buying a $100,000 condo in 5 years which requires a 20% down payment. How much should he invest today assuming he can earn a 10% return?

What are you solving for?_______________________

Listvariables:

Nper (N) =

Rate (I)=

Present Value (PV)=

Payment (PMT)=

Future Value (FV)=

Answer: _____________________________