please help me fill out this excel sheet.. I dont understand. I have the solution page filled out to see if that is correct... please helppppp.
Excel File Edit View Insert Format Tools Data Window Help Home Formulas Data Review View Insert Page Layout x fx H39 B C D E 6 H 5 Interest Rates & Compounding 7 Find the value of an amount invested for different compounding periods 8 Problem 9 You invest $100 in your bank for one year. You com 6% perum. What is your $100 worth the end of the year! 10 11 Part 1. Annual Compounding 12 Amount you invest lady (PV) 100.00 13 Interest te hunk offers you) %10061 14 Compounding periods (t) 1 ans) 15 16 PV = Present Value or beginning amount FV = Fute Value ording amount 17 t = number of compounding periods Tereta ya 19 Finance Concept: Future Value of a Lump Sum - Principal (1+r) 20 FV-PV (1) FV = 51001-06) = $100 1.06 $105 21 22 In Werde 23 If we invest one hundred dollars today and the interest rate is six percent 24 and it is compounded once per year wally we will have $106 the end 25 of the year (Future Valuel. The compounded amount is equal to the beginning 26 amount plus the interest med You we landing the bank your money and they are 27 paying you for that privilege 28 29 To mswer the problem fill in the indicated cells 30 One way to do this using Ered: 31 In cell 31 mar-100106 and hittar key cell HD 33 Hint: Remember to always the equalsigan 34 35 36 Another way sing all fomalas 37 Enter 100 incl BT 100 En 1.06 in cell G3E 39 41 To calculate in cell G.9 type the following formula-GTG and hit the car key You can write the formula directly, or you can you meetodid on the del 44 Compute the future value of $300 for you 5505 1.02 FV Finance Compressed the following for FY.Per Now for her of paned with color 50 51 52 54 Interest PV PVCF FVCE MS + Body In Words: If we invest one hundred dollars today PV=$100) and the interest rate is six pacent and it is compounded once par year annually) uttar five years 5). the Future Value FV = 100 (1.06 will be 10011:338226) $133.822 We write the formula in Exoel as 100" (1.06Y'5. We earned $30 from 6% simple interest (5 yrs .06 $30) plus an extra $3.82 from compounding Hence the Magic of Compounding! Part 2. Semi-Annual Compounding Problem What if the bank compounds interest semi-annually? How much is your $100 worth the end of the year? 8 a 5 6 7 8 9 0 1 2 13 Amount you invest today (PV) Interest rate bank offers you Compounding period 1) 100.00 6% (0.06) 2 Finance Comert: FVPV * flott Future value of $100 invested for one year at 6% semiannually FV-5100 + (1+.06272 -S100 1.0609 = $106.09 36 77 78 When payments our more frequently than one year or interest is compounded more than once per yow, you must: 1) convert the stated interest ratele a predicate Statdate Number of payments per yer 2) convert the num of years to the number of mods Number of years periods pery Note: You are making the rates with lhe ped! 80 82 In Words If we invest one hundred dollars today and the interest rate is six proni and it is compounded twice per year manually we will have $106.09. The I in the formula represents the principal carried forward for a year The process of oing trom today's value to future values is compounding 86 85 86 87 88 89 90 91 92 93 94 95 96 97 lis: remember to always use the qualsign fit and don't forget that One way to solve this problem in Excel Enter : 10011-0622nd hit enters Try find 94 99 100 101 Compute the future of Spademy forta FV-PVP 10.10.2014 Try it in PVCF FVCE MS + Ready quizlet.com/205834333/finance-test-2-chapter-6... You will retire in 15 years and want to increase your contribution each LAB 3 Kour LAB_3 Kaur zip 4 Kaur Formulas Data Review View Home 39 Insert Page Layout + X v fx B F G H K D E Your answer should be => 312 18 Part 3. Quarterly Compounding If the bank compounds interest quarterly? How much is your $100 worth? PV = 100 3 9 0 1 2 13 Amount you invest today (PV) Interest rate bank offers you Compounding period 100.00 6% (0.06) 4 FV = 7 Finance Concept: FV - PV (Initi' Future value of $100 invested for one year at 6% compounded quarterly FV = 51001+06:4r4 = 5100 * 1.0614 - $106.14 If we invest one hundred dollars today and the interest rate is six parent and it is compounded four times per year, we will have $106.14 at the end of the year In Words: 15 16 17 18 19 20 121 122 123 124 125 126 127 One way to do this in Excel Enter =100*41+06474 and hit enter key Try it in cell F125> 128 129 130 Test your skills with this problem Compute the future value of 5500 at 6 quarterly for one year FV-PV. [1 PV 500 - 0.06 Enter formula in F130 n 4 FV 2 Your answer should be => 5530.68 13: 132 133 134 Part 4. Comparing Compounding 135 136 137 138 139 140 141 Wells the table format to see her future values change with different compounding pads COMPOUNDING TABLE: 142 143 Compounding Period Divisions Value Annual 145 146 147 2 4 Monthly PPS100.00 Interest PV PVCF FVCF MS Ready quizlet.com/205834333/finance-test-2-chapter.fi Home Formulas Data Review View Insert Page Layout X fe 9 A B D E F G H Steps for filling out the Table in the Eading Value (Future Value) columns 1 Write the formula once in cell G143), and then you can copy it to cells G144 through G147. 2 Enter the formula in cell G143: $J$146/+$J$147/F1497F143 and press the enter key, 3 Bccmuse we want the principal and interest rate to be constant we use the (5) dollar sign on both sides of the letter. 4 Note: We are not adding the dollar sign to the cells for the compounding periods because we want them to change when we drag the cursor down to copy the formulas 5 To copy the formula put your mouse at the bottom right corner of cell G143 and move it until a black cross appears When it appears, hold down the RIGHT side of your mouse and drag the formula down. Hint: Leaming to copy formulas this way will save you a lot of time later on. Make sure you have the drag and drop' oprio checked. On your men har go to Tools->Oprions-Edit Testing your skills: What is the Future Value of $100 at 6% compounded 1,000 times a year! You can put 1000 into the cell where the 365 is and Excel will calculate it for you. Copy and paste (value only) your answer to the box to the night and then reset the 365. Your answer should be $106.15, the same as 365. Do you think this tells us something about the maximum rates our money can cam? Part 5. Compounding Problems Mone Problems to Test Your Skills Calculate the value of $100 invested at various interest rates and compounding periods 1. You invest $100 in a bank for one year interest 2. You invest S100 is a bank for five years at interest 3. You invest $100 in a bank for twenty years interest You set 5100 is a hank for one year los compounded quarterly Solutions Inputs: PV100 Formula IV PVM IS FV 1 EVO HIINIINT 105 PVGE FVCE Freach MS xcel File Edit View Insert Format Tools Data Windov OFF Formulas Data Review View Insert Page Layout X fox B D E F G H 1 Solutions Inputs: PV 100 15% 15 FV Formula: FV = PV (ltry Enter formula in this cell 105 1. FV = 100*15.06) Enter =1186*1+1187 Enter formulaints 127,6282 2. FY 100*1+0575 Enter-186*(1+115775 Answer: 127.63 3. FW100004 20 265.3298 Comantis.co 4. FV 100*1+1474 Answer: 110,35 105.0 2 3 15 17 18 219 20 223 222 223 224 Excel File Edit View Insert Format Tools Data Window Help Home Formulas Data Review View Insert Page Layout x fx H39 B C D E 6 H 5 Interest Rates & Compounding 7 Find the value of an amount invested for different compounding periods 8 Problem 9 You invest $100 in your bank for one year. You com 6% perum. What is your $100 worth the end of the year! 10 11 Part 1. Annual Compounding 12 Amount you invest lady (PV) 100.00 13 Interest te hunk offers you) %10061 14 Compounding periods (t) 1 ans) 15 16 PV = Present Value or beginning amount FV = Fute Value ording amount 17 t = number of compounding periods Tereta ya 19 Finance Concept: Future Value of a Lump Sum - Principal (1+r) 20 FV-PV (1) FV = 51001-06) = $100 1.06 $105 21 22 In Werde 23 If we invest one hundred dollars today and the interest rate is six percent 24 and it is compounded once per year wally we will have $106 the end 25 of the year (Future Valuel. The compounded amount is equal to the beginning 26 amount plus the interest med You we landing the bank your money and they are 27 paying you for that privilege 28 29 To mswer the problem fill in the indicated cells 30 One way to do this using Ered: 31 In cell 31 mar-100106 and hittar key cell HD 33 Hint: Remember to always the equalsigan 34 35 36 Another way sing all fomalas 37 Enter 100 incl BT 100 En 1.06 in cell G3E 39 41 To calculate in cell G.9 type the following formula-GTG and hit the car key You can write the formula directly, or you can you meetodid on the del 44 Compute the future value of $300 for you 5505 1.02 FV Finance Compressed the following for FY.Per Now for her of paned with color 50 51 52 54 Interest PV PVCF FVCE MS + Body In Words: If we invest one hundred dollars today PV=$100) and the interest rate is six pacent and it is compounded once par year annually) uttar five years 5). the Future Value FV = 100 (1.06 will be 10011:338226) $133.822 We write the formula in Exoel as 100" (1.06Y'5. We earned $30 from 6% simple interest (5 yrs .06 $30) plus an extra $3.82 from compounding Hence the Magic of Compounding! Part 2. Semi-Annual Compounding Problem What if the bank compounds interest semi-annually? How much is your $100 worth the end of the year? 8 a 5 6 7 8 9 0 1 2 13 Amount you invest today (PV) Interest rate bank offers you Compounding period 1) 100.00 6% (0.06) 2 Finance Comert: FVPV * flott Future value of $100 invested for one year at 6% semiannually FV-5100 + (1+.06272 -S100 1.0609 = $106.09 36 77 78 When payments our more frequently than one year or interest is compounded more than once per yow, you must: 1) convert the stated interest ratele a predicate Statdate Number of payments per yer 2) convert the num of years to the number of mods Number of years periods pery Note: You are making the rates with lhe ped! 80 82 In Words If we invest one hundred dollars today and the interest rate is six proni and it is compounded twice per year manually we will have $106.09. The I in the formula represents the principal carried forward for a year The process of oing trom today's value to future values is compounding 86 85 86 87 88 89 90 91 92 93 94 95 96 97 lis: remember to always use the qualsign fit and don't forget that One way to solve this problem in Excel Enter : 10011-0622nd hit enters Try find 94 99 100 101 Compute the future of Spademy forta FV-PVP 10.10.2014 Try it in PVCF FVCE MS + Ready quizlet.com/205834333/finance-test-2-chapter-6... You will retire in 15 years and want to increase your contribution each LAB 3 Kour LAB_3 Kaur zip 4 Kaur Formulas Data Review View Home 39 Insert Page Layout + X v fx B F G H K D E Your answer should be => 312 18 Part 3. Quarterly Compounding If the bank compounds interest quarterly? How much is your $100 worth? PV = 100 3 9 0 1 2 13 Amount you invest today (PV) Interest rate bank offers you Compounding period 100.00 6% (0.06) 4 FV = 7 Finance Concept: FV - PV (Initi' Future value of $100 invested for one year at 6% compounded quarterly FV = 51001+06:4r4 = 5100 * 1.0614 - $106.14 If we invest one hundred dollars today and the interest rate is six parent and it is compounded four times per year, we will have $106.14 at the end of the year In Words: 15 16 17 18 19 20 121 122 123 124 125 126 127 One way to do this in Excel Enter =100*41+06474 and hit enter key Try it in cell F125> 128 129 130 Test your skills with this problem Compute the future value of 5500 at 6 quarterly for one year FV-PV. [1 PV 500 - 0.06 Enter formula in F130 n 4 FV 2 Your answer should be => 5530.68 13: 132 133 134 Part 4. Comparing Compounding 135 136 137 138 139 140 141 Wells the table format to see her future values change with different compounding pads COMPOUNDING TABLE: 142 143 Compounding Period Divisions Value Annual 145 146 147 2 4 Monthly PPS100.00 Interest PV PVCF FVCF MS Ready quizlet.com/205834333/finance-test-2-chapter.fi Home Formulas Data Review View Insert Page Layout X fe 9 A B D E F G H Steps for filling out the Table in the Eading Value (Future Value) columns 1 Write the formula once in cell G143), and then you can copy it to cells G144 through G147. 2 Enter the formula in cell G143: $J$146/+$J$147/F1497F143 and press the enter key, 3 Bccmuse we want the principal and interest rate to be constant we use the (5) dollar sign on both sides of the letter. 4 Note: We are not adding the dollar sign to the cells for the compounding periods because we want them to change when we drag the cursor down to copy the formulas 5 To copy the formula put your mouse at the bottom right corner of cell G143 and move it until a black cross appears When it appears, hold down the RIGHT side of your mouse and drag the formula down. Hint: Leaming to copy formulas this way will save you a lot of time later on. Make sure you have the drag and drop' oprio checked. On your men har go to Tools->Oprions-Edit Testing your skills: What is the Future Value of $100 at 6% compounded 1,000 times a year! You can put 1000 into the cell where the 365 is and Excel will calculate it for you. Copy and paste (value only) your answer to the box to the night and then reset the 365. Your answer should be $106.15, the same as 365. Do you think this tells us something about the maximum rates our money can cam? Part 5. Compounding Problems Mone Problems to Test Your Skills Calculate the value of $100 invested at various interest rates and compounding periods 1. You invest $100 in a bank for one year interest 2. You invest S100 is a bank for five years at interest 3. You invest $100 in a bank for twenty years interest You set 5100 is a hank for one year los compounded quarterly Solutions Inputs: PV100 Formula IV PVM IS FV 1 EVO HIINIINT 105 PVGE FVCE Freach MS xcel File Edit View Insert Format Tools Data Windov OFF Formulas Data Review View Insert Page Layout X fox B D E F G H 1 Solutions Inputs: PV 100 15% 15 FV Formula: FV = PV (ltry Enter formula in this cell 105 1. FV = 100*15.06) Enter =1186*1+1187 Enter formulaints 127,6282 2. FY 100*1+0575 Enter-186*(1+115775 Answer: 127.63 3. FW100004 20 265.3298 Comantis.co 4. FV 100*1+1474 Answer: 110,35 105.0 2 3 15 17 18 219 20 223 222 223 224
