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Unformatted text preview: In-Class Excel ExercisesUsing Excel to Solve Financial ProblemsCommonly used financial functions:PVPresent value of annuity of $1FVFuture value of annuity of $1PMTCalculate the amount of payments or receiptsRATECalculate interest rate for payments or receiptsNPERCalculate periods of paymentsIRRCalculate internal rate of returnNPVCalculate net present value1.Julie Able has $25,000 in a fund that earns 10 percent annual compound interest. If she desires to withdraw it in five equal annual amounts, starting today (i.e., beginning of period), how much would she receive each year?Rate 0.10Nper 5PV 25 000FV Type 1 = PMT (rate, nper, pv, fv, type)= PMT (0.1, 5, 25 000, 0, 1)= ($5,995.40)2.Julie deposited $2,000 at the end of each year in a savings account for five years at compound interest. The fund had a balance of $12,456 at the date of the last deposit. What rate of interest did she earn?1Nper 5Pmt -2 000FV 12 456PV Type = RATE (nper, pmt, pv, fv, type)= RATE (5, -2 000, 0, 12 456, 0)= 11%...
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