Week2FinanceHW

Week2FinanceHW - This workbook contains the following time...

This preview shows pages 1–5. Sign up to view the full content.

This workbook contains the following time value of money calculators: FV Computes the future value of a single sum (present value). PV Computes the present value of a single sum (future value). PVA Computes the present value of equal periodic payments at the end of each period (annuity). PVAD Computes the present value of equal periodic payments at the beginning of each period (annuity due). FVA Computes the future value of equal periodic payments at the end of each period (annuity). FVAD Computes the future value of equal periodic payments at the beginning of each period (annuity due). PMT to Amortize Computes the periodic payment to fully amortize a single sum (present value). PMT to Accumulate Computes the periodic payment to accumulate a single sum (future value). Periods to Amortize Computes the periods necessary to fully amortize a single sum (present value). Periods to Accumulate Computes the periods necessary to accumulate a single sum (future value). Periodic Interest Rate Computes the periodic interest rate given present value, future value and monthly payment. Loan Balance Computes the outstanding loan balance at any point in time.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Compute the future value of a single sum (present value): The periodic interest rate is the annual interest rate Input: divided by the number of compounding periods per year. For example, if the annual interest rate is Present Value: \$100.00 18.00% with monthly compounding, enter 1.50% for the periodic interest rate. Periodic Interest Rate: 1.50% The number of periods is the total of all compounding Number of Periods: 36 periods. For example, with monthly compounding for three years enter 36. \$170.91 Future Value →
Compute the present value of a single sum (future value): The periodic interest rate is the annual interest rate Input: divided by the number of compounding periods per year. For example, if the annual interest rate is Future Value: \$15,324,111.00 18.00% with monthly compounding, enter 1.50% for the periodic interest rate. Periodic Interest Rate: 12.00% The number of periods is the total of all compounding Number of Periods: 7 periods. For example, with monthly compounding for three years enter 36. \$6,931,849.59 Present Value →

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
The periodic payment is the amount paid at the end Input: of each period Periodic Payment: \$1,028.61 The periodic interest rate is the annual interest rate divided by the number of compounding periods per Periodic Interest Rate: 1.00% year. For example, if the annual interest rate is 18.00% with monthly compounding, enter 1.50% Number of Periods: 240 for the periodic interest rate. The number of periods is the total of all compounding
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/13/2011 for the course FINANCE 101 taught by Professor Mkitchell during the Spring '11 term at DeVry Chicago.

Page1 / 13

Week2FinanceHW - This workbook contains the following time...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online