ch 05 (TVM) - 05 Chapter model 12-10-08 Chapter 5. The Time...

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1 05 Chapter model 12-10-08 Chapter 5. The Time Value of Money Then, when you hit the enter key, you get the answer, 115.76. This model is STRICTLY OPTIONAL. Neither students nor instructors need to go through it. However, if someone wants to practice with Excel, then the model can be useful. Also, on the tabs we show solutions for the within-chapter self-test questions. •• The "Main Model" performs the calculations required for Chapter 5, and was used to create many of the chapter exhibits (Tables and Figures). We pasted in a few dialog boxes for specific Excel functions and features and show then off to the right of where they apply. However, in general we encourage students who want to know more about Excel to use the Excel Tutorial and refer to it as necessary. We also let students know that Excel models can be used to create tables and graphs that can then be copied into Word documents, which is the way we prepared the text manuscript for submission to the publisher. That Although answers to the Self-Test questions within the chapter are generally quite easy and were found with a calculator, we also solved some of them with Excel as a check and to provide additional information on the solutions in case students have questions. The tabs at the lower part of this screen take you to these solutions. Even if students are not familiar with Excel, they should still be able to see the solution setup and then work out the answer with a calculator. Although we did not create the model specifically for use in lectures, it could be used as a lecture vehicle in a classroom where a projector is attached to a computer. The instructor could scroll through the model and lecture on points as they come up. This would be more useful if students have some familiarity with Excel, but that is not really necessary because everything the model does can also be done with a financial calculator. Finally, if we do something in Excel that you don't understand, you might look at our Excel Tutorial, which explains a lot of points related to Excel. For example, it discusses in some detail how to enter functions to do various math operations, how to make graphs, and lots of other things we commonly do with Excel in finance. FUTURE VALUES (Section 5-2) Note on Excel : You can do calculations in Excel in several different ways. Always start with the pointer on the cell where you want the answer displayed. Then do one of the following: (1) Enter an equal sign on the formula bar (which is right after the fx), then write out an equation, like =(1.05)^3*100 to get 1.05 to the 3rd power times 100. Hit Enter after typing the equation and you get the answer, 115.76. (2) Use a dialog box as shown below and to the right. Click on fx , then Financial, then FV, then OK to get the box. Then fill in the rate, number of periods, periodic payments, and present value. Hit OK to get the answer, 115.76. (3) Put the pointer just to the right of the fx and type = . Since you know you want FV, type FV(
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This note was uploaded on 10/13/2010 for the course USMLE na taught by Professor Na during the Spring '10 term at St. Matthew's University.

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ch 05 (TVM) - 05 Chapter model 12-10-08 Chapter 5. The Time...

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