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Please show how I write the formulas. I do not know how to do this in Excel. Thank you ~ You have a loan outstanding.
Please show how I write the formulas. I do not know how to do this in Excel. Thank you ~
You have a loan outstanding. It requires making three annual payments at the end of the next three years of $1,000 each. Your bank has offered to allow you to skip making the next two payments in lieu of making one large payment at the end of the loans term in three years. If the interest rate on the loan is 5%, what final payment will the bank require you to make so that it is indifferent between the two forms of payment? | ||||||
C | ||||||
6 | Annual payment | -$1,000 | ||||
7 | Interest rate | 5.00% | ||||
8 | Number of payments | 3 | ||||
10 | Future value | |||||
Requirements | ||||||
1. | Start Excel completed. | |||||
2. | In cell C10, by using the function FV and cell references, calculate the future value of the three year annuity (1 pt.). | |||||
Note: The output of the function in cell C10 is expected as a positive value. |
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