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Time Value of Money Excel 2

The document contains calculations related to compound interest and present/future value of cash flows. It shows: 1) Calculations to determine the present value (PV) of receiving $25,000 per year for 5 years with a 7.5% discount rate, yielding a PV of -$126,147.12. 2) Calculations to determine the future value (FV) of depositing $10,000 per year for 5 years at 5% interest, yielding an FV of $71,420.08. 3) Calculations to determine the PV of depositing $10,000 per year for 3 years at 5% interest and withdrawing the balance after 5 years, yielding a PV of

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Siraj Shaikh
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198 views9 pages

Time Value of Money Excel 2

The document contains calculations related to compound interest and present/future value of cash flows. It shows: 1) Calculations to determine the present value (PV) of receiving $25,000 per year for 5 years with a 7.5% discount rate, yielding a PV of -$126,147.12. 2) Calculations to determine the future value (FV) of depositing $10,000 per year for 5 years at 5% interest, yielding an FV of $71,420.08. 3) Calculations to determine the PV of depositing $10,000 per year for 3 years at 5% interest and withdrawing the balance after 5 years, yielding a PV of

Uploaded by

Siraj Shaikh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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0

2500000
10%

PVA
Interest rate
NPER
PMT
No. of installments
Rate
NPER
PMT
PVA
PVA*i/(1-(1+i)^-n)

1. You inherited an oil well that will pay you $25,000 per
 

year for 5 years, with the first payment being made at the
beginning of the year. If you think a fair return on the well
is 7.5%, how much should you ask for it if you decide to sell
it?
If I deposit $10000 in a bank account every year how much will it be worth i

If I deposit $10000 in a bank account every year for three years and I withdr
1 2 3 4 5
PMT PMT PMT PMT PMT

2500000
10%
9
₹ 434,101.35
4
3%
36
₹ 106,128.94
(PMT/i)*(1-(1+i)^-n)

0 1 2 3
25000 25000 25000 25000

NPER 6
Rate 7.50%
PMT 25000
PVA ₹ -126,147.12

0 25000 23255.813953 21633 20124

be worth in 5 years at 5%p.a.


0 1 2 3
10000 10000 10000
10000
Rate 5%
NPER 6
PMT 10000
FVA ₹ 71,420.08

nd I withdraw it after 5 years at 5%. What is the PV of the money

0 1 2 3
10000 10000 10000
31525
Rate 5%
NPER 3
PMT 10000
FVA ₹ 31,525.00
Rate 5%
NPER 2
PMT 0
PV 31525
FV ₹ 34,756.31

Rate 5%
NPER 5
PV ₹ 27,232.48

FV PV*(1+i)^n
PV FV/(1+i)^n

1. If a loan of Rs. 30,000 is to be paid in 5 annual insta


  

0 1 2
30000PMT PMT
Rate 12%
NPER 5
₹ 8,322.29

Principal InterestEMI
6 7 8 9 10
PMT PMT PMT PMT PMT

4 5
25000 25000
18720 17414 126147.12

4 5
10000 10000

4 5

34756
in 5 annual installments with interest rate of 12% p.a. then the equal annual installm

3 4 5
PMT PMT PMT
annual installment will be

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