Scribd
Upload
42 views14 pages

Finance Exam Toolkit

Here are the key steps to solve this problem: 1) Given: You invest $20,000 at 8% annual interest for 15 years 2) Use the future value formula: FV = PV * (1 + Rate/Periods)^Periods 3) PV = $20,000 4) Rate = 8% = 0.08 5) Periods = 15 years 6) Plug into the formula: FV = $20,000 * (1 + 0.08/1)^15 = $63,443.38 Therefore, the amount of money in the account after 15 years is $63,443.38

Uploaded by

Ashish Patwardhan
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
42 views14 pages

Finance Exam Toolkit

Here are the key steps to solve this problem: 1) Given: You invest $20,000 at 8% annual interest for 15 years 2) Use the future value formula: FV = PV * (1 + Rate/Periods)^Periods 3) PV = $20,000 4) Rate = 8% = 0.08 5) Periods = 15 years 6) Plug into the formula: FV = $20,000 * (1 + 0.08/1)^15 = $63,443.38 Therefore, the amount of money in the account after 15 years is $63,443.38

Uploaded by

Ashish Patwardhan
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
You are on page 1/ 14

Present Value of an Annuity Present Value of a growing Annuity

PMT 10000 PMT 10000


RATE (per term) 2.50% RATE (per term) 5.00%
TERMS 12 TERMS 12
GROWTH RATE (per term) 2.50%
PV 102577.645981877
PV 100446.231748336

Present Value of a Perpetuity Present Value of a growing Perpetuity


PMT 4000 PMT 6
RATE 5.00% RATE 10.00%
GROWTH RATE 2.00%
PV 80000.000
PV 75.00
Suppose you plan to invest $20,000 in an account paying 8% interest. How much will you have in the account in 15 years?
Suppose that you invest $20,000 in an account paying 8% interest. You plan to withdraw $2000 at the end of each year for 15 years. How much money will be left in the
Future Value Calculator
NPER RATE PV PMT
15 8.00% 20000 0

FV 63443.382

Get a loan that requires you to pay $500 each month for the next 48 months (four years). If the monthly interest rate you earn on your cash is 0.5%
Present Value Calculator
NPER RATE PMT FV
48 0.50% 500 0

PV 21290.159

The bank will give you $100,000 today in exchange for 10 equal payments over the next decade. You need to determine the size of the payment C that th
You would like to have $60,000 saved by the time your daughter is 18 years old. If you can earn 7% per year on your savings, how much do you need to
PMT Calculator
NPER RATE PV FV
10 8.00% 100000 0

PMT 14902.949

For providing the initial capital of $1 million, Jessica has agreed to pay $125,000 at the end of each year for the next 30 years. What is the internal rate of return ?
RATE Calculator
NPER PV PMT FV
30 -1000000 125000 0

RATE 12.09%
How much money will be left in the account after 15 years?

cash is 0.5%

the size of the payment C that the bank will require with interest rate of 8%.
vings, how much do you need to save each year to meet your goal?

the internal rate of return ?


Face Value 1000
Coupon Rate 1.90%
Coupon Payments/Per Term 1
Terms 9

Coupon Payment 19.00

Present Value Bond Calculator


NPER RATE (per term) PMT FV
9 2.50% 19.00 1000

PV 952.175

Face Value 1000


Coupon Rate 5.00%
Coupon Payments/Per Term 2
Terms 5

Coupon Payment 25.00

YTM Bond Calculator


NPER PV PMT FV
10 -957.35 25.00 1000

RATE (per term) 3.00%


Discount Rate 2.50%

Period 0 1 2 3 4 5 6 7

Discount factor 1.000 0.976 0.952 0.929 0.906 0.884 0.862 0.841

Cash Flow 0 -10000 -10000 -10000 -10000 -10000 -10000 -10000

PV 0.000 -9756.098 -9518.144 -9285.994 -9059.506 -8838.543 -8622.969 -8412.652

NPV -102577.646
8 9 10 11 12

0.821 0.801 0.781 0.762 0.744

-10000 -10000 -10000 -10000 -10000

-8207.466 -8007.284 -7811.984 -7621.448 -7435.559

You might also like