Your book calculates FV using a mathematical formula for $100, 6% and 20 years using the mathematical formula FV_20=PV_0 (1+r)^20. Then a graph is generated. Years in column A are typed as numbers. The formula also has $ that are not required to be there. I would like you to do the same for thirty years and put ONLY the information for the thirtieth year. Next to the mathematical formula you should use the EXCEL formula. Then take these three cells from the 30th year and drag them all the way up to the present time. Provide also your graph. Alter the input Present Value and return rate that appear in cells B2 & B3. Check if your work is correct.

22 PART 1 The Time Value of Money E B D FUTURE VALUE OF A SINGLE DEPOSIT AT DIFFERENT INTEREST RATES How $100 at time 0 grows at 0%, 6%, 12% 100 0% 6% 12% 1 2 Initial deposit 3 Interest rate 4 5 Year 6 0 7 1 8 2 9 3 10 4 11 5 12 6 13 7 14 8 15 9 16 10 17 11 18 12 19 13 20 14 21 15 22 16 23 17 24 18 25 19 26 20 27 28 29 900 30 800 31 700 32 33 800 34 500 400 35 36 300 37 200 38 100 39 0 40 41 FV at 0% 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 FV at 6% 100.00 106.00 112.36 119.10 126.25 133.82 141.85 150.36 159.38 168.95 179.08 189 83 201.22 213.29 226.09 239.66 254.04 289.28 285.43 302.56 320.71 FV at 12% 100.00 - $B$2*(1+D$3Y $A6 112.00 - $B$2"(1+D$3Y $A7 125.44 140.49 157.35 176.23 197.38 221.07 247.60 277.31 310.58 347.85 389.60 435.35 488.71 547.36 613.04 686.60 789.00 861.28 964.63 FV 0% FV 6% FV at 12 . : : + 10 20 Terminology: What's a Year? When Does it Begin? While these questions may seem obvious, this is not the case. There's a lot of semantic confusion on this subject in finance courses and texts