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If I deposit $100 into an account earning 10% per year, how much will my deposit be
worth after 5 years?
PV : $ (100.00)
I: 10.00%
n: 5
FV? $ 161.05
PV : $ (100.00)
I: 0.83%
n: 60
FV? $ 164.53
*** Note: Change values in 'PV' 'I' and 'n' to solve for FV ***
Time Value on Excel (Using the Financial Function (fx) Wizard)
How much would I need to deposit today in an account earning 10% per year in order to
accumulate $10,000 after 5 years?
FV : $ (10,000.00)
I: 10.00%
n: 5
PV? $ 6,209.21
FV : $ (10,000.00)
I: 0.83%
n: 60
PV? $ 6,077.89
*** Note: Change values in 'FV' 'I' and 'n' to solve for PV ***
Time Value on Excel (Using the Financial Function (fx) Wizard) Return
How much would I have in my retirement account if I deposited $2000 each year for 35 years and I earned 10% on
my savings? What about $4,000?
Instead, what if I made monthly deposits of $166.67? How about monthly deposits of $333.33?
*** Note: Change values in 'PMT' 'I' and 'n' to solve for FVA ***
Time Value on Excel (Using the Financial Function (fx) Wizard) Return
How much would I have in my retirement account if I deposited $2000 at the beginning of each year for 35 years and I
earned 10% on my savings? What about $4,000?
Instead, what if I made beginning of the month deposits of $166.67? How about monthly deposits of $333.33?
*** Note: Change values in 'PMT' 'I' and 'n' to solve for FVA ***
Time Value on Excel (Using the Financial Function (fx) Wizard) Return
How much could I afford to borrow for a home if I can make monthly payments of $12,000 per year for 30 years at
8%? What about monthly payment of $1,000?
What if I wanted to know what my montlhy payments would be a $20,000 car loan over five years at 8%?
PMT : $ (20,000.00)
I: 0.67%
n: 60
PVA? $ 405.53
*** Note: Change values in 'PMT' 'I' and 'n' to solve for PVA ***
Time Value on Excel (Using the Financial Function (fx) Wizard) Return
How much could I afford to borrow for a home if I can make annual payments of $12,000 per year for 30 years at 8%?
What about monthly payment of $1,000?
What if I wanted to know what my montlhy payments would be a $20,000 car loan over five years at 8%?
PMT : $ (20,000.00)
I: 0.67%
n: 60
PVA? $ 405.53
PVAD? $ 402.84
*** Note: Change values in 'PMT' 'I' and 'n' to solve for PVA ***
Time Value on Excel (Using the Financial Function (fx) Wizard)
a) Present Value
How much must I deposit today to receive $100 in year 1,$ 200 in year 2, $300
in year 3, and $400 in year four if I can earn 10% on my deposits?
PVIF at
Year FV 10% PV of CFn
1 $ 100 0.90909 $ 90.91
2 $ 200 0.82645 $ 165.29
3 $ 300 0.75131 $ 225.39
4 $ 400 0.68301 $ 273.21
b) Future Value
What will my bank account be worth if I deposit $100 in year 1, $200 in year 2,
$300 in year 3 and $400 in year 4 if I can earn 10% on my deposits?
FVIF at
Year FV 10% FV of CFn
1 $ 100 1.10000 $ 110.00
2 $ 200 1.21000 $ 242.00
3 $ 300 1.33100 $ 399.30
4 $ 400 1.46410 $ 585.64