Guidelines_for_Assignment_1

Guidelines_for_Assignment_1 - Guidelines for Assignment 1:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Guidelines for Assignment 1: Question 1.a. and 1.b.: You should use excel function FV for this part **Note on FV Function : According to excel the amount of annuities or pmt parameter should have negative sign, so that you have a positive answer. There is no specific answer for this. It’s just how excel set it up. Question 2. - The question is asking how much Amanda should save if she wants to save an equal amount of money every year for 15 year - When you construct the table you should put all the formula and references to cells correctly. (at the end of each year beginning from year 0), instead of just saving in years 0-3 and 6 – 14. - Make sure you consider the time value of money for the last column “Account end of year”. e.g. whatever you have as “net balance beginning of the year” should be multiplied by (1+i) - At the end, based on the give data (savings at the specific years and so ) you should have $0 in the account in year 34. This shows you have set up your table correctly. This last
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/17/2011 for the course MSCI 261 taught by Professor Bonkoo during the Spring '09 term at Waterloo.

Page1 / 2

Guidelines_for_Assignment_1 - Guidelines for Assignment 1:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online