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Using data from DOE’s Annual Energy Review, plot the nominal prices of natural gas
from 1980 through 2006 for both the residential and electric power sectors on the same graph. Nominal Price ($/100 cubicfeet) Solution
The raw data originates from Table 6.8 of the AER. Plotting the data results in 16
14
12
10 Residential
Electric Power 8
6
4
2
0
1980 1985 1990 1995
Year 2000 2005 K.E. Holbert 8/31/2007 Brute Force Method in Excel
Cal. Year Empl. Yr
2008
1
2009
2
2010
3
2011
4
2012
5
2013
6
2014
7
2015
8
2016
9
2017
10
2018
11
2019
12
2020
13
2021
14
2022
15
2023
16
2024
17
2025
18
2026
19
2027
20
2028
21
2029
22
2030
23
2031
24
2032
25
2033
26
2034
27
2035
28
2036
29
2037
30
2038
31
2039
32
2040
33
2041
34
2042
35
2043
36
2044
37
2045
38
2046
39
2047
40
Total of all 40 yrs:
Sum of Yrs 3140: EEE463Homework Salary
$50,000.00
$51,750.00
$53,561.25
$55,435.89
$57,376.15
$59,384.32
$61,462.77
$63,613.96
$65,840.45
$68,144.87
$70,529.94
$72,998.49
$75,553.43
$78,197.80
$80,934.73
$83,767.44
$86,699.30
$89,733.78
$92,874.46
$96,125.07
$99,489.44
$102,971.57
$106,575.58
$110,305.72
$114,166.42
$118,162.25
$122,297.93
$126,578.36
$131,008.60
$135,593.90
$140,339.69
$145,251.57
$150,335.38
$155,597.12
$161,043.02
$166,679.52
$172,513.31
$178,551.27
$184,800.57
$191,268.59
$4,227,513.89
$1,646,380.02 Refined Method Using Excel FV Functions
Base Data
Initial Salary (Present Value) =
Escalation factor (interest rate)
Number of years (periods) = $50,000.00
0.035
39 (a) Results using th FV function
Salary in the 40th year = $191,268.59 (b) Results using FV function
Total earnings by the 40th yr =
Total earnings by the 30th yr =
Total earnings in yrs 3040 = $4,227,513.89
$2,581,133.86
$1,646,380.02 I'm intentionally not showing the FV function with the
arguments filled in, so that I encourage you to try it.
Essentially all the arguments are the base data.
If you can't figure it out, then let me know
and I'll share the solution with you. Financial Page 1 of 1 ...
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This note was uploaded on 02/11/2012 for the course EEE 463 taught by Professor Holbert during the Spring '08 term at ASU.
 Spring '08
 HOLBERT

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