Effect of Compounding Frequency

Nominal annual interest rate 8.00%

Number of compounding periods per year 2
Amount of initial investment 100,000
Length of investment period (years) 10

Effective interest rate 8.16%

Future value of investment (using formula) 219,112
Future value of investment (using function) 219,112

Data table method

Effective Future
Int. rate Value
Compounding period 8.16% 219,112
Annual 1
Semi-annual 2
Quarterly 4
Monthly 12
Bi-weekly 26
Weekly 52
Daily 365
Present and Future Values for Constant Annuities

Annual saving 1000

Number of years 10
Interest rate 8%

Annuity in arrears Table Formulas Functions

Present value 6710 6710
Future value 14487 14487

Annuity in advance Table Formulas Functions

Present value 7247 7247
Future value 15645 15645

Table for annuity in arrers Table for annuity in advance

Time CF PV FV CF PV FV
0 1000 1000 2159
1 1000 926 1999 1000 926 1999
2 1000 857 1851 1000 857 1851
3 1000 794 1714 1000 794 1714
4 1000 735 1587 1000 735 1587
5 1000 681 1469 1000 681 1469
6 1000 630 1360 1000 630 1360
7 1000 583 1260 1000 583 1260
8 1000 540 1166 1000 540 1166
9 1000 500 1080 1000 500 1080
10 1000 463 1000 0 0 0
11 0 0 0 0 0 0
12 0 0 0 0 0 0
13 0 0 0 0 0 0
14 0 0 0 0 0 0
15 0 0 0 0 0 0
16 0 0 0 0 0 0
17 0 0 0 0 0 0
18 0 0 0 0 0 0
19 0 0 0 0 0 0
20 0 0 0 0 0 0
Present and Future Values of Growing Annuities

Annual saving 1000

Number of years 20
Interest rate 8%
Growth rate 4%

Adjusted interest rate 3.85%

Annuity in arrears Table Formulas Functions

Present value 13777
Future value 64216

Annuity in advance Table Formulas Functions

Present value 14307
Future value 66686

Table for annuity in arrers Table for annuity in advance

Time CF PV FV CF PV FV
0 1000 1000 4661
1 1040 963 4488 1040 963 4488
2 1082 927 4322 1082 927 4322
3 1125 893 4162 1125 893 4162
4 1170 860 4008 1170 860 4008
5 1217 828 3859 1217 828 3859
6 1265 797 3716 1265 797 3716
7 1316 768 3579 1316 768 3579
8 1369 739 3446 1369 739 3446
9 1423 712 3319 1423 712 3319
10 1480 686 3196 1480 686 3196
11 1539 660 3077 1539 660 3077
12 1601 636 2963 1601 636 2963
13 1665 612 2854 1665 612 2854
14 1732 590 2748 1732 590 2748
15 1801 568 2646 1801 568 2646
16 1873 547 2548 1873 547 2548
17 1948 526 2454 1948 526 2454
18 2026 507 2363 2026 507 2363
19 2107 488 2275 2107 488 2275
20 2191 470 2191 0 0 0
Loan Amortization Table Using PMT Function

Input Data
Interest rate 10%
Loan life 15
Initial loan balance Rs. 100,000.00
Required annual payment Rs. 13,147

Beginning Installment
Year periodbal. payment
1 Rs. 100,000 Rs. 13,147
2 Rs. 96,853 Rs. 13,147
3 Rs. 93,391 Rs. 13,147
4 Rs. 89,582 Rs. 13,147
5 Rs. 85,393 Rs. 13,147
6 Rs. 80,785 Rs. 13,147
7 Rs. 75,716 Rs. 13,147
8 Rs. 70,140 Rs. 13,147
9 Rs. 64,007 Rs. 13,147
10 Rs. 57,260 Rs. 13,147
11 Rs. 49,839 Rs. 13,147
12 Rs. 41,675 Rs. 13,147
13 Rs. 32,696 Rs. 13,147
14 Rs. 22,818 Rs. 13,147
15 Rs. 11,952 Rs. 13,147
16 Rs. 0 Rs. 0
17 Rs. 0 Rs. 0
18 Rs. 0 Rs. 0
19 Rs. 0 Rs. 0
20 Rs. 0 Rs. 0
21 Rs. 0 Rs. 0
22 Rs. 0 Rs. 0
23 Rs. 0 Rs. 0
24 Rs. 0 Rs. 0
25 Rs. 0 Rs. 0
26 Rs. 0 Rs. 0
27 Rs. 0 Rs. 0
28 Rs. 0 Rs. 0
29 Rs. 0 Rs. 0
30 Rs. 0 Rs. 0
Interest Ending period
payment Principal repaid bal.
Rs. 10,000 Rs. 3,147 Rs. 96,853
Rs. 9,685 Rs. 3,462 Rs. 93,391
Rs. 9,339 Rs. 3,808 Rs. 89,582
Rs. 8,958 Rs. 4,189 Rs. 85,393
Rs. 8,539 Rs. 4,608 Rs. 80,785
Rs. 8,078 Rs. 5,069 Rs. 75,716
Rs. 7,572 Rs. 5,576 Rs. 70,140
Rs. 7,014 Rs. 6,133 Rs. 64,007
Rs. 6,401 Rs. 6,747 Rs. 57,260
Rs. 5,726 Rs. 7,421 Rs. 49,839
Rs. 4,984 Rs. 8,163 Rs. 41,675
Rs. 4,168 Rs. 8,980 Rs. 32,696
Rs. 3,270 Rs. 9,878 Rs. 22,818
Rs. 2,282 Rs. 10,866 Rs. 11,952
Rs. 1,195 Rs. 11,952 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Rs. 0 Rs. 0 Rs. 0
Loan Amortization Table Using Goal Seek Function

Input Data
Interest rate 10%
Loan life 20
Initial loan balance Rs. 100,000.00
Required annual payment Rs. 11,746

Beginning Installment
Year periodbal. payment
1 Rs. 100,000 Rs. 11,746
2 Rs. 98,254 Rs. 11,746
3 Rs. 96,333 Rs. 11,746
4 Rs. 94,221 Rs. 11,746
5 Rs. 91,897 Rs. 11,746
6 Rs. 89,341 Rs. 11,746
7 Rs. 86,529 Rs. 11,746
8 Rs. 83,436 Rs. 11,746
9 Rs. 80,033 Rs. 11,746
10 Rs. 76,291 Rs. 11,746
11 Rs. 72,174 Rs. 11,746
12 Rs. 67,645 Rs. 11,746
13 Rs. 62,664 Rs. 11,746
14 Rs. 57,184 Rs. 11,746
15 Rs. 51,157 Rs. 11,746
16 Rs. 44,526 Rs. 11,746
17 Rs. 37,233 Rs. 11,746
18 Rs. 29,210 Rs. 11,746
19 Rs. 20,386 Rs. 11,746
20 Rs. 10,678 Rs. 11,746
Interest Ending
payment Principal repaid period bal.
Rs. 10,000 Rs. 1,746 Rs. 98,254
Rs. 9,825 Rs. 1,921 Rs. 96,333
Rs. 9,633 Rs. 2,113 Rs. 94,221
Rs. 9,422 Rs. 2,324 Rs. 91,897
Rs. 9,190 Rs. 2,556 Rs. 89,341
Rs. 8,934 Rs. 2,812 Rs. 86,529
Rs. 8,653 Rs. 3,093 Rs. 83,436
Rs. 8,344 Rs. 3,402 Rs. 80,033
Rs. 8,003 Rs. 3,743 Rs. 76,291
Rs. 7,629 Rs. 4,117 Rs. 72,174
Rs. 7,217 Rs. 4,529 Rs. 67,645
Rs. 6,765 Rs. 4,981 Rs. 62,664
Rs. 6,266 Rs. 5,480 Rs. 57,184
Rs. 5,718 Rs. 6,028 Rs. 51,157
Rs. 5,116 Rs. 6,630 Rs. 44,526
Rs. 4,453 Rs. 7,293 Rs. 37,233
Rs. 3,723 Rs. 8,023 Rs. 29,210
Rs. 2,921 Rs. 8,825 Rs. 20,386
Rs. 2,039 Rs. 9,707 Rs. 10,678
Rs. 1,068 Rs. 10,678 Rs. -0
Loan Amortization Table for Changing Interest Rate

Input Data
Initial loan balance 100000

Length (yrs) Int Rate

Period 1 5 6%
Period 2 3 8%
Period 3 7 9%

Loan life (yrs) 15

Required annual payment
Beginning
Year periodbal.
Installment Interest Ending period Corrosponding
payment payment Principal repaid bal. period int. rate
Loan Amortization Table for Changing Annual Payment

Input Data
Initial loan balance 100000
Interest rate (%) 9%
Loan life (yrs) 15

Year no Increment
Payment increment: Step 1 5 10%
Payment increment: Step 2 11 20%

Required initial annual payment

Beginning period Installment
Year bal. payment
Interest Ending period Incremental
payment Principal repaid bal. Change
The Condominium Project

Input data
Cost of project today INR 100,000.00
Inflation rate 5%
Return on investment 8%
Collection growth rate 3%
Years till construction 10

Future cost of project

Required first collection (using table)

Annual Collection: Accumulated Balance:

Time Start of year End of year
1
2
3
4
5
6
7
8
9
10