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Unformatted text preview: 3-3 Part II Future value using technologyExcelspreadsheetFollowing is the hand-constructed schedule from 3-3-1:end monthPMTinterestearnedduring month= i(prev FV)FV (end of month) = (prev FV) + PMT + interest1100100.0021001.00201.0031002.01303.0141003.03406.04Excelallows you to enter “formulae” into the “cells” of the spreadsheet, mimicking what you did by hand, as follows:columnCDEFrow#end mo. PMT InterestFV341100=0.01*F3=F3+D4+E452100=0.01*F4=F4+D5+E563100=0.01*F5=F5+D6+E674100=0.01*F6=F6+D7+E7The “variables” in the formulae refer to a valuse in other cells. For example, “F3” is refers to the value in column F and row 3 (namely, 0). You can verify that these formulae duplicate those used by the “by hand” schedule at the top.You don’t even need to enter every formula. Excelis very good at figuring out what you want (I will show you how to prompt it).3-3 Part IIp. 1The numerical values computed by the spreadsheet are:end mo.PMTInterest FV0.0011000.00100.0021001.00201.00201....
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- Spring '11