If I deposit 10,000 tenge today, for 5 years at 10 % per annum, how much is

PV Todays's value -10,000

FV after 5 years KZT16,105.10
PMT regular payments 0
RATE interest rate 10%
NPER number of periods 5

If I deposit 10,000 tenge today, for 5 years at 10 % per annum, COMPOUNDED QUART

PV -10,000
FV ? KZT16,386.16
PMT 0
RATE 3%
NPER 20

If I take a loan of 5,000,000 tg for 20 years @ 12% per annum, how much EMI (eq

PV 5,000,000 ppmt
FV 0 230 (KZT49,346.48)
PMT ? (KZT55,054.31) 7 (KZT5,365.25)
RATE 1%
NPER 240
um, how much is received after 5 years?

MPOUNDED QUARTERLY, how much is received after 5 years?

how much EMI (equal monthly installments) should I need to pay?

ipmt
(KZT5,707.83) (KZT55,054.31)
(KZT49,689.06) (KZT55,054.31)
 Numericals on Different Compounding frequencies

Problem 1
In 10 years, what is the value of 100,000 tenge invested today at an interest rate of 8% per year, c

PV -100,000
FV ? KZT221,964.02
PMT 0
RATE 0.67%
NPER 120
Problem 2
At an 11 % annual rate compounded quarterly for 2 years, compute the future value o
without compounding
PV -80,000 PV
FV ? KZT99,390.44 FV ?
PMT 0 PMT
RATE 2.75% RATE
NPER 8 NPER

Problem 3
An investor needs 2,000,000 tenge in 18 months. If she can earn 6% at the bank, compounded qu

PV ? (KZT1,829,084.39)
FV 2,000,000
PMT 0
RATE 1.50%
NPER 6

problem 4
In 10 years, what is the value of 100,000 tenge invested today at an interest rate of 8% per year?

PV -100,000
FV ? KZT215,892.50
PMT 0
RATE 8%
NPER 10
 IPAD problem
st rate of 8% per year, compounded monthly?
PV ?
FV
PMT
RATE
NPER

pute the future value of 80,000 tenge today.

-80,000
KZT98,568.00
0
11%
2

bank, compounded quarterly, how much must she deposit today?

st rate of 8% per year?

KZT167,291.67
0
-7875
1%
24
Numericals on Annuity
problem 1
If a $ 45,000 car loan is financed at 12 % ove
PV 45,000
FV 0 overall pmt pereplata/overpayment
PMT ? ($1,185.02) ($56,881.08) $11,881.00
RATE 1%
NPER 48

problem 2
If an investor puts $5,724 per year, starting at the end of the first year, in an a

PV 0
FV 500000
PMT -5,724
RATE 8%
NPER ? 27

problem 3
An annuity will pay 8 annual payments of $100, with the first payment to
ordinary annuity annuity due
PV ? KZT496.76 KZT556.38
FV 0 0
PMT -100 -100
RATE 12% 12%
NPER 8 8

problem 4
If 10 equal annual deposits of $1000 are made into an inve

PV 0 (KZT16,560.29)
FV ? KZT16,560.29 ? KZT39,204.23
PMT -1000 0
RATE 9% 9%
NPER 10 10

problem 5

An investor will receive an annuity of $5,000 a year for 7 years. The first payment is to
of the a
PV ? (KZT25,851.47) ? KZT15,000.68
FV (KZT25,851.47)
PMT KZT5,000.00 0
RATE 11.50% 11.50%
NPER 7 5
financed at 12 % over 4 years, what is the monthly car payment?

the first year, in an account earning 8 % and ends up accumulating $500,000, how many years di

the first payment to be received one year from now. if the interest rate is 12% per year, what is P
hydrid
KZT556.38
0
-100
12%
7

re made into an investment account earning 9% starting today, how much will you have in 20 ye

he first payment is to be received 5 years from now. If the annual interest rate is 11,5%, what is p
of the annuity?
0,000, how many years did it take the investor ?

is 12% per year, what is PV of this annuity?

ch will you have in 20 years?

st rate is 11,5%, what is present value

 Numericals on Perpetuity
problem 1
An investment offers $100 per year forever. If the required rate of return on this investment i

PV=PMT/Rate PV ? 1000
pmt 100
rate 10%

problem 2

Compute the PV of a perpetuity with $100 payments beginning four years from now. Assume the ap
PV
PV ? 1000 FV
pmt 100 PMT
rate 10% RATE
NPER
petuity

of return on this investment is 10%, how much is this investment worth?

ars from now. Assume the appropriate annual interest rate is 10%
? ($683.01)
1000
0
10%
4
 Numericals on Uneven Cash Flows

Problem 1

If the expected cash flows at the end of year are 3000 and are expected to increase by 1000
find the PV of this cash flow stream using a di

1 2 3 4
PV (KZT2,678.57) (KZT3,188.78) (KZT3,558.90) (KZT3,813.11)
FV 3000 4000 5000 6000
PMT 0 0 0 0
RATE 12% 12% 12% 12%
NPER 1 2 3 4
problem 2

How much would the following income stream be worth assuming a 12% discount rate
years from today and $300 receiv

HOMEWORK
1 2 3
PV ? (KZT100.00) (KZT178.57) (KZT318.88)
FV 100 200 400
PMT 0 0 0
RATE 12% 12% 12%
NPER 0 1 2
als on Uneven Cash Flows

expected to increase by 1000 each year up to year 4 and expected cash flow in year 5 is -6000,
s cash flow stream using a discount rate of 12%?

5 TOTAL PV NPV
KZT3,404.56 (KZT9,834.80) KZT9,834.80
-6000
0
12%
5

uming a 12% discount rate? $100 received today, $200 received 1 year from today, $400 is rece
om today and $300 received 3 years from today.

4 total pv NPV
(KZT213.53) (KZT810.98) KZT810.98
300
0
12%
3
w in year 5 is -6000,

r from today, $400 is received 2

 Complex time value of money problems

problem 1

A person is getting a $25,000 loan, with an 8% annual interest rate to be paid in 48 equal monthly i
due at the end of the first month, find the principal and interest of the enti

PV -25000 TABLE
FV 0 months principal interest pmt
PMT ? KZT610.32 1 25000 166.6666667
RATE 0.67% 2 KZT24,556.34 KZT163.71
NPER 48 3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
be paid in 48 equal monthly installments. If the first payment is
ncipal and interest of the entire period.

TABLE
principal pmt outstanding balance
KZT443.66 KZT24,556.34
KZT446.61 KZT24,109.73