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  • Compounding

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    1044 Tanishka goel
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    The document contains 3 solutions using the FV (future value) financial function. Solution 1 calculates a future value of ₹52,870.25 with a PV of ₹30,000 over 5 years at 12% interest with no payments. Solution 2 calculates future values at the end and beginning of year 4 of ₹139,230 and ₹153,153 respectively with a 10% rate and ₹30,000 payment over 4 years with no starting principal. Solution 3 calculates the future values at the beginning and end of multiple years with varying cash inflows and a 10% interest rate, totaling ₹88,143 at the end and ₹80,130 at

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    Financial Management

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    The document contains 3 solutions using the FV (future value) financial function. Solution 1 calculates a future value of ₹52,870.25 with a PV of ₹30,000 over 5 years at 12% interest with no payments. Solution 2 calculates future values at the end and beginning of year 4 of ₹139,230 and ₹153,153 respectively with a 10% rate and ₹30,000 payment over 4 years with no starting principal. Solution 3 calculates the future values at the beginning and end of multiple years with varying cash inflows and a 10% interest rate, totaling ₹88,143 at the end and ₹80,130 at

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views2 pages

    Compounding

    Uploaded by

    1044 Tanishka goel
    The document contains 3 solutions using the FV (future value) financial function. Solution 1 calculates a future value of ₹52,870.25 with a PV of ₹30,000 over 5 years at 12% interest with no payments. Solution 2 calculates future values at the end and beginning of year 4 of ₹139,230 and ₹153,153 respectively with a 10% rate and ₹30,000 payment over 4 years with no starting principal. Solution 3 calculates the future values at the beginning and end of multiple years with varying cash inflows and a 10% interest rate, totaling ₹88,143 at the end and ₹80,130 at

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Solution1:

    PV 30,000
    YEAR 5
    NPER 5
    RATE 12%
    PMT 0 FV Function= FV(rate,NPER,PMT,[PV],[TYPE])

    FV Function ₹ 52,870.25

    Solution2:
    PV 0
    YEAR 4
    NPER 4
    RATE 10%
    PMT 30,000

    FV Function= FV(rate,NPER,PMT,[PV],[TYPE])
    i) At the end of year:
    ₹ 139,230.00

    ii) At the beginning of the year:


    ₹ 153,153.00

    Solution3:
    YEAR CASH INFLOWS FV(at beginning of year) FV(at the end of the year)
    0 0 0 0
    1 30,000 ₹ 43,923.00 ₹ 39,930.00
    2 20,000 ₹ 26,620.00 ₹ 24,200.00
    3 10,000 ₹ 12,100.00 ₹ 11,000.00
    4 5,000 ₹ 5,500.00 ₹ 5,000.00

    Rate of Interest 10%

    At the end ₹ 88,143.00

    At the beginning

    ₹ 80,130.00
    PER,PMT,[PV],[TYPE])

    PER,PMT,[PV],[TYPE])

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