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ICA7-Tung Nguyen.xlsx - Assumptions Scenario #1 Compounding...

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AssumptionsScenario #1Compounding periodicityQuaterlyNumber payments per year4Annual Percentage Rate11.10%Scenario #2Compounding periodicityMonthlyNumber payments per year12Annual Percentage Rate16.00%Scenario #3Compounding periodicityDailyNumber payments per year365Annual Percentage Rate12.20%Scenario #4Compounding periodicitySemi-annuallyNumber payments per year2Annual Percentage Rate9.00%Scenario #1Effective Annual Rate11.57%Scenario #2Effective Annual Rate17.23%Scenario #3Effective Annual Rate12.97%Scenario #4Effective Annual Rate9.20%1+𝐸𝐴𝑅=(1+𝐴𝑃𝑅/π‘š)^
^π‘š
AssumptionsScenario #1Compounding periodicityNumber payments per yearEffective Annual RateScenario #2Compounding periodicityNumber payments per yearEffective Annual RateScenario #3Compounding periodicityNumber payments per yearEffective Annual RateScenario #4Compounding periodicityNumber payments per yearEffective Annual RateScenario #1Annual Percentage RateScenario #2Annual Percentage RateScenario #3Annual Percentage RateScenario #4Annual Percentage Rate𝐴𝑃𝑅=π‘š[γ€–(1+𝐸𝐴𝑅)γ€—^(1β„π‘š
π‘š)βˆ’1]
AssumptionsPeriodic deposits$1,500.00Number of payments per year4.00Investment period (yrs)3.00Annual Percentage Rate7.00%Quarterly interest rate1.75%012Monthly cash flows
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Term
Spring
Professor
someguy

Unformatted text preview: Investment period (yrs) 3.00 Annual Percentage Rate 7.00% Quarterly interest rate 1.75% 1 2 Monthly cash flows $0.00 $1,500.00 $1,500.00Account balance$1,500.00 $3,026.25Long Form Future value annuity factor 13.2251 Future value of annuity$ 19,837.66 Excel Function Future value of annuity $19,837.66 γ€– γ€–γ€— ?? _=?Γ—1/ ( γ€– (1+) γ€— ^βˆ’1) 3 4 12... $1,500.00 $1,500.00$1,500.00 $4,579.21 $6,159.35 $ 19,837.66 Assumptions Periodic payments Number of payments per year Interest rate (APR) Target account value Monthly interest rate 1 2 Monthly cash flows Account balance Excel FunctionNumber of months to reach target Number of Periods =NPER(rate,pmt,pv,[fv],[type]) 3 4 5 6 N ... Assumptions Periodic payments $ 1,800.00 Number of payments per year 12.00 Life of loan (yrs)5.00Amount of loan $ 90,000.00 1 2 Monthly cash flows $90,000.00-$1,800.00-$1,800.00 Excel Function Implied periodic interest rate 0.62% Implied APR 7.42% Interest Rate =RATE(nper,pmt,pv,[fv],[guess]) 34 60 ...-$1,800.00-$1,800.00-$1,800.00...
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