principal	APR	Payment
	755	3.9%	66

Regular Payments Savings Plan A Three Methods Approach Before you begin: Look for your name on the sign-up sheet (given by your instructor) and copy the Line #, Principal, and APR. Review the savings plan formula (regular payments) from section 4-C of your text. Remember that all formulas in an Excel spreadsheet begin with an equality symbol'='. Recall that to reference a cell, you can click on it or type its column letter and row number. Download Spreadsheet: Download or ask your instructor for the file "Savings_Plan_Template.xls" which provides you a spreadsheet framework. This helps you concentrate on the three methods of calculating the lump sum investment without worrying about the formatting details. Procedure: Using the template you have downloaded and the prototype figure below, construct a savings plan spreadsheet using three different methods (iteration (steps), formula, and Excel function) that will arrive at the very same balance if properly done. Be sure to type in the Givens box the same principal, compound, and APR as the prototype figure. From Month #18 (row 26) and thereafter, you will be building formulas that are flexible enough to accommodate other values you type into the Givens box later. Iterations (Steps) Method 1. Link by a cell reference, the total cell of Month #0 (cell F8) to the principal in the Givens box (cell D2). 2. Now let principal from Month #1 (cell C9) reference from the total (cell F8). 3. For the interest in Month #1 (cell D9), create a formula by multiplying the principal (cell C9) by the given APR (cell D4) divided by the given Compounds (cell D5). Note: because you will want to always use the same given APR and compound values even after you copy or fill the formulas down the columns, you must use absolute cell le 11 FI ER G FREE ml 111 14 JA VOT LIE HORITIES TE TH 11 TINA I TUT 11 12 FA MIE SA IF 1 so 1900 FAE H referencing for those cell locations (locking them in). This can be done by pressing F4 (for Windows) or Command-T (for Macintosh) while the cursor is in the middle or at the end of cell references D4 and D5. 4. Now add the interest to the principal (that is, compound the interest) along with the payment from Month #1 (cell E9) to make a new total balance (cell F9). This is done by adding cells C9, D9, and E9 as a formula (that is, *=C9+D9+E9' or *=sum(C9:E9)'). 5. Complete the Iteration Method by dragging over the principal, interest, payment, and total cells from Month #1 and filling their corresponding formulas down to Month #36. This can also be done by looking for the small black cross hair in the bottom right corner of your shaded rectangle and dragging the three cells down or simply double-clicking. See your software help or instructor for help. Don't forget to check for accuracy. Formula Method 1. In the Formula box at the bottom of your template, follow the directions for the Savings Plan (Regular Payments) formula as shown in the prototype. 2. Confirm that your answer matches the same one found for Month #18 using iterations. Excel Function Method 1. In the Excel Function box at the bottom of your template, follow the directions for the formula as shown in the prototype. The focus here is to learn how to use the built-in function known as future value (FV) for Excel. You can find helpful dialog boxes to guide you through this process by looking for the "Insert" ribbon in the newer Office suite for Windows or by using the "Insert" pull-down menu and finding the feature "Function..." in the Macintosh Office suite. 2. You will notice that the template and prototype indicate cell references in the future value function rather than actual values. This reinforces the idea of keeping your formula generalized to accommodate future changes to the Givens box. 3. Be aware of the need to place a negative sign after the equality to keep the future value as a positive value. Polishing the Worksheet Be sure to total your interest after Month #36 (D45) and payments (E45) by using the function 'Sum' and dragging over the interest cells from Month #1 to Month #36 or take advantage of the Auto Sum tool that may be on one of your tool bars. Check to see if the very last balance (Month #36) matches the prototype quantity. Results Summary: Upon verifying that your compound interest spreadsheet (based on the prototype givens) has correct quantities throughout, modify your spreadsheet according to the sign-up sheet values you were given. Then answer the 5 reflection questions in the textboxes on the spreadsheet. Turn in your completed spreadsheet on Canvas. Line Number Givens: Principal Payment APR Compounds Total alol Methods Month Principal Interest Payment 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Total: Month #18 Iterations (Steps) Month #18 Formula (Regular Payments) NNNININ Month #18 Excel Function Reflection 1: What would be another way to calculate total interest rather than merely using '=sum/? Reflection 2: When was the original principal invested and when was the payment invested (end or beginning of the period)? In the finance world, what type of investment is this called? Reflection 3: What are some of the pros and cons to each of the three methods you have used? Reflection 4: Which of the three methods is your favorite way to calculate the balance and why? Regular Payments Savings Plan A Three Methods Approach Before you begin: Look for your name on the sign-up sheet (given by your instructor) and copy the Line #, Principal, and APR. Review the savings plan formula (regular payments) from section 4-C of your text. Remember that all formulas in an Excel spreadsheet begin with an equality symbol'='. Recall that to reference a cell, you can click on it or type its column letter and row number. Download Spreadsheet: Download or ask your instructor for the file "Savings_Plan_Template.xls" which provides you a spreadsheet framework. This helps you concentrate on the three methods of calculating the lump sum investment without worrying about the formatting details. Procedure: Using the template you have downloaded and the prototype figure below, construct a savings plan spreadsheet using three different methods (iteration (steps), formula, and Excel function) that will arrive at the very same balance if properly done. Be sure to type in the Givens box the same principal, compound, and APR as the prototype figure. From Month #18 (row 26) and thereafter, you will be building formulas that are flexible enough to accommodate other values you type into the Givens box later. Iterations (Steps) Method 1. Link by a cell reference, the total cell of Month #0 (cell F8) to the principal in the Givens box (cell D2). 2. Now let principal from Month #1 (cell C9) reference from the total (cell F8). 3. For the interest in Month #1 (cell D9), create a formula by multiplying the principal (cell C9) by the given APR (cell D4) divided by the given Compounds (cell D5). Note: because you will want to always use the same given APR and compound values even after you copy or fill the formulas down the columns, you must use absolute cell le 11 FI ER G FREE ml 111 14 JA VOT LIE HORITIES TE TH 11 TINA I TUT 11 12 FA MIE SA IF 1 so 1900 FAE H referencing for those cell locations (locking them in). This can be done by pressing F4 (for Windows) or Command-T (for Macintosh) while the cursor is in the middle or at the end of cell references D4 and D5. 4. Now add the interest to the principal (that is, compound the interest) along with the payment from Month #1 (cell E9) to make a new total balance (cell F9). This is done by adding cells C9, D9, and E9 as a formula (that is, *=C9+D9+E9' or *=sum(C9:E9)'). 5. Complete the Iteration Method by dragging over the principal, interest, payment, and total cells from Month #1 and filling their corresponding formulas down to Month #36. This can also be done by looking for the small black cross hair in the bottom right corner of your shaded rectangle and dragging the three cells down or simply double-clicking. See your software help or instructor for help. Don't forget to check for accuracy. Formula Method 1. In the Formula box at the bottom of your template, follow the directions for the Savings Plan (Regular Payments) formula as shown in the prototype. 2. Confirm that your answer matches the same one found for Month #18 using iterations. Excel Function Method 1. In the Excel Function box at the bottom of your template, follow the directions for the formula as shown in the prototype. The focus here is to learn how to use the built-in function known as future value (FV) for Excel. You can find helpful dialog boxes to guide you through this process by looking for the "Insert" ribbon in the newer Office suite for Windows or by using the "Insert" pull-down menu and finding the feature "Function..." in the Macintosh Office suite. 2. You will notice that the template and prototype indicate cell references in the future value function rather than actual values. This reinforces the idea of keeping your formula generalized to accommodate future changes to the Givens box. 3. Be aware of the need to place a negative sign after the equality to keep the future value as a positive value. Polishing the Worksheet Be sure to total your interest after Month #36 (D45) and payments (E45) by using the function 'Sum' and dragging over the interest cells from Month #1 to Month #36 or take advantage of the Auto Sum tool that may be on one of your tool bars. Check to see if the very last balance (Month #36) matches the prototype quantity. Results Summary: Upon verifying that your compound interest spreadsheet (based on the prototype givens) has correct quantities throughout, modify your spreadsheet according to the sign-up sheet values you were given. Then answer the 5 reflection questions in the textboxes on the spreadsheet. Turn in your completed spreadsheet on Canvas. Line Number Givens: Principal Payment APR Compounds Total alol Methods Month Principal Interest Payment 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Total: Month #18 Iterations (Steps) Month #18 Formula (Regular Payments) NNNININ Month #18 Excel Function Reflection 1: What would be another way to calculate total interest rather than merely using '=sum/? Reflection 2: When was the original principal invested and when was the payment invested (end or beginning of the period)? In the finance world, what type of investment is this called? Reflection 3: What are some of the pros and cons to each of the three methods you have used? Reflection 4: Which of the three methods is your favorite way to calculate the balance and why