PRINCIPLES OF FINANCIAL ANALYSIS

SPREADSHEET ASSIGNMENT: Sinking Fund Annuities

1. Retrieve the file CFM0510P.XLS. Enter the appropriate

financial function command in cell B7 that solves Problem 10

in Chapter 5.

2. Invoke a copy command in cell B11 to fill cells B12 through

B35.

3. Create a formula in cell C12 that solves for the total

compound value of the retirement fund following the second

ordinary annuity contribution.

4. Adapt the formula in cell C12 to cells C13 through C35.

Hint: Invoke a copy command, being mindful of the issue of

absolute versus relative cell addresses.

5. Verify that the dollar amount reported in cell C35 justifies

the conclusion reported in cell D35.

6. In cell B37 compute the total ordinary annuity contributions

made during the life of the retirement fund.

7. Enter the appropriate financial function command in cell B47

that solves Problem 10 assuming annuity due contributions are

planned.

8. In cell B48 compute the total annuity due contributions made

during the life of the retirement fund.

9. Print the worksheet.

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Excel file

SUSAN ROBINSON'S RETIREMENT FUND
Financial objective:	$600,000.00
Years until retirement:	25
Projected annual rate of return:	9.00%
Ordinary annuity contribution:
Age	Annual Annuity	Compound Value
31	$0.00	$0.00
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55			Objective achieved
Total contributions:
Alternative Analysis: Annuity Due
Financial objective:	$600,000.00
Years until retirement:	25
Projected annual rate of return:	9.00%
Annuity due contribution:
Total contributions: