Assignment 1
gjunki
fvprob1.xlsmSheet1
| Future Value | Inputs for FV | ||||||||
| $1,610.51 | Rate | 10% | |||||||
| NPER | 5 | ||||||||
| PMT | 0 | ||||||||
| PV | ($1,000) | ||||||||
| Type | 0 | ||||||||
| $1,610.51 |
Here is the answer: FV = PV x (1+r)n FV= ? r = 10% n = 10% FV= future value PV= Present Value FV = $1,000 x (1+10%)5 In column H I solve the problem using the present value formula. In column I the Future value calculation is done with the Excel formula. The Periodic payments are zero because I only make one deposit at time zero. If you were savings $1,000 each year the PMT would be -$1,000. The entry for "type" indicates when payments are made or are due. When 0 is entered it means you are making a deposit or investment at the end of the period not the beginning of the period.
