Professional Documents
Culture Documents
Initial Deposit
100
Interest Rate
6%
Number of years, n
2
Account balance after n years
112.36
$350.00
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Future Value
$100.00
$106.00
$112.36
$119.10
$126.25
$133.82
$141.85
$150.36
$159.38
$168.95
$179.08
$189.83
$201.22
$213.29
$226.09
$239.66
$254.04
$269.28
$285.43
$302.56
$320.71
Future Value
$300.00
Year
$250.00
$200.00
$150.00
$100.00
$50.00
$0.00
1
10 11 12 13 14 15 16 17 18 19 20 21
100
0%
Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
100
6%
100
12%
FV at 0% FV at 6% FV at 12%
100
100.00
100.00
100
106.00
112.00
100
112.36
125.44
100
119.10
140.49
100
126.25
157.35
100
133.82
176.23
100
141.85
197.38
100
150.36
221.07
100
159.38
247.60
100
168.95
277.31
100
179.08
310.58
100
189.83
347.85
100
201.22
389.60
100
213.29
436.35
100
226.09
488.71
100
239.66
547.36
100
254.04
613.04
100
269.28
686.60
100
285.43
769.00
100
302.56
861.28
100
320.71
964.63
1200
1000
800
600
400
200
0
1
FV at 0%
FV at 6%
FV at 12%
10
11
12
13
14
15
16
17
18
19
20
21
at
6%
Account balance,
beginning of year
0
106.00
218.36
337.46
463.71
597.53
739.38
889.75
1049.13
1218.08
Future Value using
Excel's FV
functions
Deposit at
beginning of year
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
$1,397.16
Interest earned
during year
6
12.36
19.10
26.25
33.82
41.85
50.36
59.38
68.95
79.08
Total in account
at end of year
$
$
$
$
$
$
$
$
$
$
106.00
218.36
337.46
463.71
597.53
739.38
889.75
1,049.13
1,218.08
1,397.16
6%
Account balance,
end of year
0
100.00
206.00
318.36
437.46
563.71
697.53
839.38
989.75
1149.13
Future Value using
Excel's FV
functions
Deposit at end
of year
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
$1,318.08
Interest earned
during year
0
6.00
12.36
19.10
26.25
33.82
41.85
50.36
59.38
68.95
Total in account
at end of year
$
$
$
$
$
$
$
$
$
$
100.00
206.00
318.36
437.46
563.71
697.53
839.38
989.75
1,149.13
1,318.08
Discount rate
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
21%
22%
23%
24%
25%
26%
27%
28%
29%
30%
31%
32%
33%
34%
35%
36%
100
3
6%
83.96193
Present
Value
100.00
97.06
94.23
91.51
88.90
86.38
83.96
81.63
79.38
77.22
75.13
73.12
71.18
69.31
67.50
65.75
64.07
62.44
60.86
59.34
57.87
56.45
55.07
53.74
52.45
51.20
49.99
48.82
47.68
46.58
45.52
44.48
43.48
42.51
41.56
40.64
39.75
20.00
0.00
100%
1100%
37%
38%
39%
40%
41%
42%
43%
44%
45%
46%
47%
48%
49%
50%
38.89
38.05
37.24
36.44
35.67
34.92
34.20
33.49
32.80
32.13
31.48
30.85
30.23
29.63
2100%
3100%
Discount Rate
4100%
5100%
Year
1
2
3
4
5
Present
value of
payment
100 94.33962264
100
88.999644
100 83.9619283
100 79.20936632
100 74.72581729
$421.24
$421.24
$421.24
6%
Payment at
end of year
Year
1
2
3
4
5
100
200
300
400
500
Prsent
value
$94.34
$178.00
$251.89
$316.84
$373.63
$1,214.69
$1,214.69
5%
Year
-800
100
150
200
250
300
-800.00
95.24
136.05
172.77
205.68
235.06
NPV
$44.79
$44.79
Discount Rate
NPV
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
200.00
165.86
133.36
102.41
72.92
44.79
17.96
-7.65
-32.11
-55.48
-77.83
-99.21
-119.67
-139.26
-158.04
-176.03
-193.28
250.00
200.00
150.00
100.00
50.00
N
P
V
0.00
-50.00
-100.00
-150.00
-200.00
-250.00
0%
1%
2%
2%
3%
4%
5%
6%
7%
8%
9%
Discount Rate
10%
11%
12%
13%
14%
15%
16%
Investment A
0
1
2
3
4
5
NPV
Investment B
-800
250
500
200
250
300
-800
600
200
100
500
300
219.06
373.75
6.6965%
Year
Payment
0
1
2
3
4
5
-800
100
150
200
250
300
0.00
6.6965%
NPV
IRR
Discount Rate
NPV
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
200.00
165.86
133.36
102.41
72.92
44.79
17.96
-7.65
-32.11
-55.48
-77.83
-99.21
-119.67
-139.26
-158.04
-176.03
-193.28
250.00
200.00
150.00
100.00
50.00
N
P
V
0.00
-50.00
-100.00
-150.00
-200.00
-250.00
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Discount Rate
10%
11%
12%
13%
14%
15%
15%
16%
Deposit, X
Interest rate
In bank, before
deposit
Year
0
1
2
0
$9,615.38
$20,000.00
Deposit
Total at
End of
or
beginning year with
withdraw
of year
interest
l
8903.133
8903.133 $9,615.38
8903.133 $18,518.52 $20,000.00
-20000
($0.00)
($0.00)
0.00
Deposit, X
Interest rate
In bank, before
deposit
Year
0
1
2
Deposit
Total at
End of
or
beginning year with
withdraw
of year
interest
l
$20,000.00
5
6.00%
$3,347.10
0.00
Birthday
10
11
12
13
14
15
16
17
18
19
20
21
8.00%
$4,000.000
$20,000.00
In bank on birthday,
before
deposit/withdrawl
0
$4,320.00
$8,985.60
$14,024.45
$19,466.40
$25,343.72
$31,691.21
$38,546.51
$45,950.23
$28,026.25
$8,668.35
($12,238.18)
Deposit or
withdrawl at
beginning of year
$4,000.00
$4,000.00
$4,000.00
$4,000.00
$4,000.00
$4,000.00
$4,000.00
$4,000.00
-$20,000.00
-$20,000.00
-$20,000.00
-$20,000.00
Total
4,000.00
8,320.00
12,985.60
18,024.45
23,466.40
29,343.72
35,691.21
42,546.51
25,950.23
8,026.25
(11,331.65)
(32,238.18)
-$13,826.40
Birthday
10
11
12
13
14
15
16
17
18
19
20
8.00%
$6,227.78
-$20,000.00
In bank on birthday,
before
deposit/withdrawl
0
$6,726.00
$13,990.07
$21,835.28
$30,308.10
$39,458.74
$49,341.44
$60,014.75
$71,541.93
$55,665.28
$38,518.50
Deposit or
withdrawl at
beginning of year
$6,227.78
$6,227.78
$6,227.78
$6,227.78
$6,227.78
$6,227.78
$6,227.78
$6,227.78
-$20,000.00
-$20,000.00
-$20,000.00
Total
6,227.78
12,953.77
20,217.85
28,063.05
36,535.87
45,686.52
55,569.21
66,242.52
51,541.93
35,665.28
18,518.50
21
$19,999.98
-$20,000.00
(0.02)
-$0.01
Birthday
10
11
12
13
14
15
16
17
18
19
20
21
8.00%
$6,227.78
-$20,000.00
In bank on birthday,
before
deposit/withdrawl
0
$6,726.00
$13,990.08
$21,835.28
$30,308.10
$39,458.75
$49,341.45
$60,014.76
$71,541.94
$55,665.29
$38,518.52
$20,000.00
Deposit or
withdrawl at
beginning of year
$6,227.78
$6,227.78
$6,227.78
$6,227.78
$6,227.78
$6,227.78
$6,227.78
$6,227.78
-$20,000.00
-$20,000.00
-$20,000.00
-$20,000.00
Total
6,227.78
12,953.77
20,217.85
28,063.06
36,535.88
45,686.52
55,569.22
66,242.54
51,541.94
35,665.29
18,518.52
-
$0.00
$6,227.78
Annual amount
deposited
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
$1,768.81
$1,962.73
$2,184.47
$2,439.68
$2,735.61
$3,081.72
$3,490.65
$3,979.61
$4,572.69
$5,304.68
$6,227.78
$7,423.96
$9,029.88
$11,291.47
$14,700.60
$20,404.92
$25,000
$20,000
$15,000
$10,000
$5,000
$0
1
Birthday
1
2
3
4
5
6
7
8
9
10
9.00%
$75,000.000
$30,000.00
In bank on
birthday,
before
0
$81,750.00
$97,127.18
$115,396.80
$137,102.93
$162,892.00
$193,531.98
$194,292.35
$195,195.74
$196,269.05
Deposit or
withdrawl
at
$75,000.00
-$30,000.00
-$30,000.00
-$30,000.00
-$30,000.00
End of year
with interest
$6,726.00
$13,990.07
$21,835.28
$30,308.10
$39,458.74
$49,341.44
$60,014.75
$71,541.93
$55,665.28
$38,518.50
$19,999.98
Total
End of year
with
interest
75,000.00
81,750.00
97,127.18
115,396.80
137,102.93
162,892.00
163,531.98
164,292.35
165,195.74
166,269.05
$81,750.00
$97,127.18
$115,396.80
$137,102.93
$162,892.00
$193,531.98
$194,292.35
$195,195.74
$196,269.05
$197,544.26
($0.02)
End of year
with interest
$6,726.00
$13,990.08
$21,835.28
$30,308.10
$39,458.75
$49,341.45
$60,014.76
$71,541.94
$55,665.29
$38,518.52
$20,000.00
$0.00
NLY
10
11
12
13
14
89107.5
97127.17
105868.6
115396.8
125782.5
104402.9
81099.19
55698.12
15
16
Annual deposit
Joe's age today
20
64
45
20
100,000.00
8.00%
2,540.23
2,540.23
2,750.57
2,978.96
3,227.07
3,496.73
3,789.96
4,109.02
4,456.39
4,834.85
5,247.48
5,697.73
6,189.47
6,727.03
7,315.32
7,959.85
8,666.90
9,443.62
10,298.16
11,239.91
12,279.68
13,430.03
14,705.58
16,123.53
17,704.15
19,471.60
21,454.82
23,688.86
26,216.51
29,090.61
32,377.18
36,159.79
40,545.86
45,675.79
51,736.74
58,983.84
992,000.00
982,000.00
972,000.00
962,000.00
952,000.00
942,000.00
932,000.00
922,000.00
912,000.00
902,000.00
892,000.00
882,000.00
872,000.00
862,000.00
852,000.00
842,000.00
832,000.00
822,000.00
812,000.00
802,000.00
792,000.00
782,000.00
772,000.00
762,000.00
752,000.00
742,000.00
732,000.00
722,000.00
712,000.00
702,000.00
692,000.00
682,000.00
672,000.00
662,000.00
652,000.00
642,000.00
632,000.00
622,000.00
612,000.00
602,000.00
592,000.00
582,000.00
572,000.00
562,000.00
552,000.00
542,000.00
532,000.00
522,000.00
512,000.00
502,000.00
492,000.00
482,000.00
472,000.00
462,000.00
452,000.00
442,000.00
432,000.00
422,000.00
412,000.00
402,000.00
392,000.00
382,000.00
372,000.00
362,000.00
352,000.00
342,000.00
332,000.00
322,000.00
312,000.00
302,000.00
292,000.00
282,000.00
272,000.00
262,000.00
252,000.00
242,000.00
232,000.00
222,000.00
55
56
57
58
59
60
61
62
63
64
67,774.17
78,623.44
92,305.08
110,034.34
133,836.46
167,356.66
217,885.12
302,431.84
472,026.32
981,814.74
242,000.00
232,000.00
222,000.00
212,000.00
202,000.00
192,000.00
182,000.00
172,000.00
162,000.00
152,000.00
142,000.00
132,000.00
122,000.00
112,000.00
102,000.00
92,000.00
82,000.00
72,000.00
62,000.00
52,000.00
42,000.00
32,000.00
22,000.00
12,000.00
2,000.00
20 21 22 23 24
24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
$100,000
49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64
LOAN PAYMENT
Loan Principal
100,000.00
Loan Interest
10.00%
Years to pay off loan
10
Annual payment
$16,274.54
$16,274.54
Year
1
2
3
4
5
6
7
8
9
10
Principal at
beginning of
year
100,000.00
$93,725.46
$86,823.47
$79,231.27
$70,879.86
$61,693.31
$51,588.10
$40,472.37
$28,245.07
$14,795.04
Principal at
end of year
$16,274.54
$16,274.54
$16,274.54
$16,274.54
$16,274.54
$16,274.54
$16,274.54
$16,274.54
$16,274.54
$16,274.54
Part of
Part of
payment that payment that
is interest
is principal
$10,000.00
$9,372.55
$8,682.35
$7,923.13
$7,087.99
$6,169.33
$5,158.81
$4,047.24
$2,824.51
$1,479.50
$6,274.54
$6,901.99
$7,592.19
$8,351.41
$9,186.55
$10,105.21
$11,115.73
$12,227.30
$13,450.03
$14,795.04
Year
1
2
3
4
5
6
$1,000.00
10.00%
$250.00
Principal at
beginning of
year
$1,000.00
$850.00
$685.00
$503.50
$303.85
$84.24
Payment at
end of year
$250.00
$250.00
$250.00
$250.00
$250.00
$250.00
Interest
$100.00
$85.00
$68.50
$50.35
$30.39
$8.42
Return of
principal
$150.00
$165.00
$181.50
$199.65
$219.62
$241.58
3,000
4,000
2,500
2,000
Dividends
3,500
3,000
1,500
1,000
500
2,500
0
1991
1992
2,000
1,500
1,000
500
0
1991
1992
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Year
1993
1994
1995
1996
Years
1997
1998
1999
2000
Exercise
2001
2001
y
13
22
31
-8
14
6
35
30
25
20
15
10
5
0
-5 0
-10
60 12
18 6 24
yx
24
30
36
8
42
4815 54
60 22
66
72
7897 84
90
96
38
40
50
61
72
80
85
84
76
25
27
35
44
54
63
68
67
60
NYC Temprature
90
80
70
60
50
40
30
20
10
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Months
Aug
Sep
Dec
65
54
43
50
41
31
mprature
Sep
Oct
Nov
Dec
15%
Year
1
2
3
4
5
6
7
Cash flow
100
115.00
132.25
152.09
174.90
201.14
231.31
250
200
150
100
50
0
1
Growth = 15.0%
Growth
EXERCISE 1
Future Value, FV
YEAR
600.00
15%
10
$2,427.33
FUTURE VALUE
1
2
3
4
5
6
7
8
9
10
$690.00
$793.50
$912.53
$1,049.40
$1,206.81
$1,387.84
$1,596.01
$1,835.41
$2,110.73
$2,427.33
FUTURE VALUE
Deposit
Interest rate, r
Number of years, n
Future Value, FV
$2,500.00
$2,250.00
$2,000.00
$1,750.00
$1,500.00
$1,250.00
$1,000.00
$750.00
$500.00
$250.00
$0.00
1
EXERCISE 2
8.00%
Interest rate
Year
Future value in
year 10
Gift
0
1
2
3
4
5
6
7
8
9
10000
10000
10000
10000
10000
10000
10000
10000
10000
10000
TOTAL
Future value in year 10
EXERCISE 3
Interest rate
7.00%
$21,589.25
$19,990.05
$18,509.30
$17,138.24
$15,868.74
$14,693.28
$13,604.89
$12,597.12
$11,664.00
$10,800.00
$156,454.87
$156,454.87
Year
Future value in
year 10
Gift
0
1
2
3
10000
10000
10000
10000
TOTAL
Present Value of as of today
$7,628.95
$8,162.98
$8,734.39
$9,345.79
$33,872.11
$33,872.11
EXERCISE 4
14.00%
Interest rate
Year
Future value in
year 10
Gift
1
2
3
4
1000
1000
1000
1000
TOTAL
Present Value of as of today
EXERCISE 5
Year
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Payment
-1000
150
150
150
150
150
150
150
150
150
150
150
150
150
150
150
$592.08
$674.97
$769.47
$877.19
$2,913.71
$2,913.71
12%
12%
EXERCISE 6
Year
Payment
0
1
2
3
4
5
6
7
8
9
10
-1000
100
200
300
400
500
600
700
800
900
1000
32%
EXERCISE 7
BOND FACE VALUE
NUMBER OF PAYMENTS
PAYMENTS
INTEREST RATE
PV
$
$
$
1,000.00
6
120.00
7.00%
1,238.33
Your age
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
Account balance,
beginning of year
10,733
Deposit or
withdrawal
beginning of
year
10,733
Interest
earned
during year
FUTURE VALUE, FV
YEARS
10
Total in
account
end of year