Excel Ch. 5

# Excel Ch. 5 - o FV Just like PV enter as a negative number...

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Ch. 5: Excel FV of a lump sum: o =FV (rate, nper, pmt, -pv, type) o Rate: Rate per period I.e. annual rate of 10% compounded semiannually equals rate of 5% per period o Nper: Number of periods I.e. a 5 year time span compounded semiannually would be 10 periods o Pmt: Relevant for annuities o PV: Enter as a negative (cash outflow) o Type: Relevant for some annuities Enter 0 if payments are made at end of period Enter 1 if payments made at beginning of period (annuity due) PV of a lump sum: o =PV (rate, nper, pmt, -fv, type)

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Unformatted text preview: o FV: Just like PV, enter as a negative number • Solving for nper: o =NPER (rate, pmt, -pv, fv, type) o PV/ FV: Make one negative and one positive o “Double your money”: #s don’t matter Just make FV 2x PV • Solving for rate: o =RATE (nper, pmt, pv, fv, type, guess) o Guess: Ignore • Weird stuff: o What portion of a monthly payment (say, the payment to period 101) goes towards the principle, and what portion goes toward interest? IPMT PPMT...
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