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phase_2_ip_example_calculations_1.xlsxExamples
| Phase 2 IP - Supplemental Time Value of Money Calculation Examples | Inputs | |||
| DO NOT USE THIS AS YOUR PHASE 2 IP EXCEL TEMPLATE. | Calculation | |||
| CREATE YOU OWN BASED ON THE TASK LIST LAYOUT. | ||||
| USE THE FORMULAS FROM THESE EXAMPLES IN COMPLETING THE TASK. | ||||
| Phase 1 | ||||
| SLIDE 5-16 | ||||
| FUTURE VALUE OF A SINGLE AMOUNT | ||||
| Present Value | ||||
| Interest Rate | ||||
| Number of Years | ||||
| Future value | ||||
| SLIDE 5-22 | ||||
| PRESENT VALUE OF A SINGLE AMOUNT | ||||
| Future value | ||||
| Interest Rate | ||||
| Number of Years | ||||
| Present value | ||||
| SLIDE 5-71 | ||||
| INTEREST OR GROWTH RATE | ||||
| SERIES OF CASH FLOWS | ||||
| Year | Cash Flow | |||
| 2008 (Present Value) | ||||
| 2012 (Future Value) | ||||
| Annual growth rate | ||||
| Number of Years = 4 (2012 - 2008) | ||||
| Phase 2 | ||||
| SLIDE 5-29 | ||||
| FUTURE VALUE OF AN ORDINARY ANNUITY | ||||
| Annual payment | ||||
| Interest Rate | ||||
| Number of Years | ||||
| Future value of an ordinary annuity | ||||
| SLIDE 5-33 | ||||
| PRESENT VALUE OF AN ORDINARY ANNUITY | ||||
| Annual payment | ||||
| Interest Rate | ||||
| Number of Years | ||||
| Present value of an ordinary annuity | ||||
| SLIDE 5-62 | ||||
| ANNUAL DEPOSITS NEEDED TO | ||||
| ACCUMULATE A FUTURE SUM | ||||
| Future value | ||||
| Number of Years | ||||
| Interest Rate | ||||
| Annual deposit | ||||
| SLIDE 5-65 | ||||
| ANNUAL PAYMENT TO REPAY A LOAN | ||||
| Loan Principal (present value) | ||||
| Interest Rate | ||||
| Number of Years | ||||
| Annual Payment | ||||
Answers
| Phase 2 IP - Textbook Calculation Examples | Inputs | ||
| Calculation | |||
| Phase 1 | |||
| SLIDE 5-16 | |||
| FUTURE VALUE OF A SINGLE AMOUNT | |||
| Present Value | 800 | ||
| Interest Rate | 6% | ||
| Number of Years | 5 | ||
| Future value | $1,070.58 | ||
| SLIDE 5-22 | |||
| PRESENT VALUE OF A SINGLE AMOUNT | |||
| Future value | 1700 | ||
| Interest Rate | 8% | ||
| Number of Years | 8 | ||
| Present value | $918.46 | ||
| SLIDE 5-71 | |||
| INTEREST OR GROWTH RATE | |||
| SERIES OF CASH FLOWS | |||
| Year | Cash Flow | ||
| 2008 (Present Value) | 1250 | ||
| 2012 (Future Value) | 1520 | ||
| Annual growth rate | 5.01% | ||
| Number of Years = 4 (2012 - 2008) | |||
| Phase 2 | |||
| SLIDE 5-29 | |||
| FUTURE VALUE OF AN ORDINARY ANNUITY | |||
| Annual payment | 1000 | ||
| Interest Rate | 7% | ||
| Number of Years | 5 | ||
| Future value of an ordinary annuity | $5,750.74 | ||
| SLIDE 5-33 | |||
| PRESENT VALUE OF AN ORDINARY ANNUITY | |||
| Annual payment | 700 | ||
| Interest Rate | 8% | ||
| Number of Years | 5 | ||
| Present value of an ordinary annuity | $2,794.90 | ||
| SLIDE 5-62 | |||
| ANNUAL DEPOSITS NEEDED TO | |||
| ACCUMULATE A FUTURE SUM | |||
| Future value | 30000 | ||
| Number of Years | 5 | ||
| Interest Rate | 6% | ||
| Annual deposit | $5,321.89 | ||
| SLIDE 5-65 | |||
| ANNUAL PAYMENT TO REPAY A LOAN | |||
| Loan Principal (present value) | 6000 | ||
| Interest Rate | 10% | ||
| Number of Years | 4 | ||
| Annual Payment | $1,892.82 | ||
