chapters 5-6

# chapters 5-6 - Future Value One Cash Flow Present Value...

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Future Value One Cash Flow Present Value \$1,000 Interest/Discount Rate 0.05 Number of Periods 5 Future Value 1276.28 =B2*(1+B3)^B4 \$1,276.28 =FV(B3,B4,,-B2,1) Example 2 Future Value One Cash Flow Present Value \$1,000 Interest/Discount Rate 0.05 Number of Periods 10 Future Value 1628.89 =B11*(1+B12)^B13 \$1,628.89 =FV(B12,B13,,-B11,1) Example 3 Future Value One Cash Flow Present Value \$10 Interest/Discount Rate 0.06 Number of Periods 200 Future Value 447189.84 =B20*(1+B21)^B22 \$447,189.84 =FV(B21,B22,,-B20,1) General Growth Future Value One Cash Flow Present Value \$3,000,000 Interest/Discount Rate 0.15 Number of Periods 5 Future Value 6034071.56 =B29*(1+B30)^B31 \$6,034,071.56 =FV(B30,B31,,-B29,1) Present Value Interest/Discount Rate Number of Periods Future Value Present Value Interest/Discount Rate Number of Periods Future Value

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Present Value Interest/Discount Rate Number of Periods Future Value
Present Value One Cash Flow Example 5 Discount R 40540.34 =D5/(1+D3)^D4 1000 0.08 0.03714 17 5 \$150,000 1200 \$40,540.34 =PV(D3,D4,,-D5,1) another example Example 6 Present Value One Cash Flow Discount Rate 9345.79 =D14/(1+D12)^D13 10000 0.07 0.1225 1 6 \$10,000 20000 \$9,345.79 =PV(D12,D13,,-D14,1) Example 3 Example 7 Present Value One Cash Flow Discount Rate 10000.00 =D23/(1+D21)^D22 5000 0.07 0.1727 10 17 \$19,672 75000 \$10,000.00 =PV(D21,D22,,-D23,1) Important Relationship I,II -A Present Value One Cash Flow 310.46 =D32/(1+D30)^D31 0.1 5 \$500 \$310.46 =PV(D30,D31,,-D32,1) Important Relationship I -B Present Value One Cash Flow 192.77 =D41/(1+D39)^D40 0.1 10 \$500 \$192.77 =PV(D39,D40,,-D41,1) Important Relationship II -B Present Value One Cash Flow 248.59 =D50/(1+D48)^D49 0.15 5 \$500 \$248.59 =PV(D48,D49,,-D50,1)

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Chapter 6 - Present Value with Daily Compounding 12718.56 =D60/(1+D58)^D59 0 =0.055/365 1095 =3*365 \$15,000 \$12,718.56 =PV(D58,D59,,-D60,1)
Rate Number of Periods - Example \$15,000 =(F5/F2)^(1/F4)-1 0.1 3.02 = LOG(H5/H2)/LOG(1 + H3) \$20,000 Example 8 Time \$15,000 =(F14/F11)^(1/F13)-1 0.08 5.14 = LOG(H14/H11)/LOG(1 + H12) \$21,750 =(F23/F20)^(1/F22)-1

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Finding EAR Finding APR

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## chapters 5-6 - Future Value One Cash Flow Present Value...

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