ECN 5600_Chapter02 - A 1 2 3 4 5 6 Initial deposit Interest...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
CALCULATING FUTURE VALUES WITH EXCEL Initial deposit 100 Interest rate 6% Number of years, n 2 Account balance after n years 112.36 #NAME? A B C 1 2 3 4 5 6
Background image of page 1

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

View Full DocumentRight Arrow Icon
THE FUTURE VALUE OF A SINGLE $100 DEPOSIT Initial deposit 100 Interest rate 6% Number of years, n 2 Account balance after n years 112.36 #NAME? Year Future value 0 100.00 #NAME? 1 106.00 #NAME? 2 112.36 #NAME? 3 119.10 #NAME? 4 126.25 #NAME? 5 133.82 6 141.85 7 150.36 8 159.38 9 168.95 10 179.08 11 189.83 12 201.22 13 213.29 14 226.09 15 239.66 16 254.04 17 269.28 18 285.43 19 302.56 20 320.71 Graph title How the Future Value Grows at 6% Annual Interest 0 2 4 6 8 10 12 14 16 18 20 0 50 100 150 200 250 300 350 Future Value of $100 at 6% Annual Interest Years Future value A B C D E F G 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38
Background image of page 2
Initial deposit 100 Interest rate 0% 6% 12% Year FV at 0% FV at 6% FV at 12% 0 100.00 100.00 100.00 #NAME? 1 100.00 106.00 112.00 #NAME? 2 100.00 112.36 125.44 3 100.00 119.10 140.49 4 100.00 126.25 157.35 5 100.00 133.82 176.23 6 100.00 141.85 197.38 7 100.00 150.36 221.07 8 100.00 159.38 247.60 9 100.00 168.95 277.31 10 100.00 179.08 310.58 11 100.00 189.83 347.85 12 100.00 201.22 389.60 13 100.00 213.29 436.35 14 100.00 226.09 488.71 15 100.00 239.66 547.36 16 100.00 254.04 613.04 17 100.00 269.28 686.60 18 100.00 285.43 769.00 19 100.00 302.56 861.28 20 100.00 320.71 964.63 FUTURE VALUE OF A SINGLE DEPOSIT AT DIFFERENT INTEREST RATES How $100 at time 0 grows at 0%, 6%, 12% 0 2 4 6 8 10 12 14 16 18 20 0 100 200 300 400 500 600 700 800 900 1000 FV at 0% FV at 6% FV at 12% A B C D E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
Background image of page 3

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

View Full DocumentRight Arrow Icon
Year 0 Year 1 Year 2 Today 0 1 2 3 End of year 1 End of year 2 Beginning of year 1 Beginning of year 2 Beginning of year 3
Background image of page 4
Interest 6% #NAME? #NAME? Year 1 0.00 100.00 6.00 106.00 #NAME? 2 106.00 100.00 12.36 218.36 #NAME? 3 218.36 100.00 19.10 337.46 4 337.46 100.00 26.25 463.71 5 463.71 100.00 33.82 597.53 6 597.53 100.00 41.85 739.38 7 739.38 100.00 50.36 889.75 8 889.75 100.00 59.38 1,049.13 9 1,049.13 100.00 68.95 1,218.08 10 1,218.08 100.00 79.08 1,397.16 $1,397.16 #NAME? FUTURE VALUE WITH ANNUAL DEPOSITS at beginning of year Account balance, beg. year Deposit at beginning of year Interest earned during year Total in account at end of year Future value using Excel's FV function A B C D E F 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Background image of page 5

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

View Full DocumentRight Arrow Icon
Deposits at Beginning of Year 0 1 2 3 4 5 6 7 8 9 10 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 179.08 #NAME? 168.95 #NAME? 159.38 #NAME? 150.36 #NAME? 141.85 #NAME? 133.82 #NAME? 126.25 #NAME? 119.10 #NAME? 112.36
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/15/2012 for the course ECON 5600 taught by Professor Will during the Spring '11 term at Utah Valley University.

Page1 / 34

ECN 5600_Chapter02 - A 1 2 3 4 5 6 Initial deposit Interest...

This preview shows document pages 1 - 7. Sign up to view the full document.

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