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    Chapter 19

    Uploaded by

    Semh Zavala
    The document contains information about calculating the future value of investments with varying interest rates, deposit amounts, periods and inflation rates. Tables show the future value and today's dollars of different annual deposit amounts over 10 years with 5% interest and 2% inflation. Another table uses the goal seek function to determine the price per unit needed to achieve a 30% margin with given costs, revenue and units sold. A third table uses goal seek to find the break-even point with the same costs and units sold.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Chapter 19

    Uploaded by

    Semh Zavala
    20 views13 pages
    The document contains information about calculating the future value of investments with varying interest rates, deposit amounts, periods and inflation rates. Tables show the future value and today's dollars of different annual deposit amounts over 10 years with 5% interest and 2% inflation. Another table uses the goal seek function to determine the price per unit needed to achieve a 30% margin with given costs, revenue and units sold. A third table uses goal seek to find the break-even point with the same costs and units sold.

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    Chapter19.xlsx

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    The document contains information about calculating the future value of investments with varying interest rates, deposit amounts, periods and inflation rates. Tables show the future value and today's dollars of different annual deposit amounts over 10 years with 5% interest and 2% inflation. Another table uses the goal seek function to determine the price per unit needed to achieve a 30% margin with given costs, revenue and units sold. A third table uses goal seek to find the break-even point with the same costs and units sold.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    20 views13 pages

    Chapter 19

    Uploaded by

    Semh Zavala
    The document contains information about calculating the future value of investments with varying interest rates, deposit amounts, periods and inflation rates. Tables show the future value and today's dollars of different annual deposit amounts over 10 years with 5% interest and 2% inflation. Another table uses the goal seek function to determine the price per unit needed to achieve a 30% margin with given costs, revenue and units sold. A third table uses goal seek to find the break-even point with the same costs and units sold.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 13

    Future Value

    Interest Rate 5% The Future Value of an Investment


    Period 10
    Annual Deposit ($10,000)
    Initial Deposit ($25,000)
    Deposit Type 1

    Future Value
    $172,790

    Page 1
    Future Value

    f an Investment

    Page 2
    Future Value (Data Table)

    Interest Rate 5% The Future Value of an Investment


    Period 10
    Annual Deposit ($10,000)
    Initial Deposit ($25,000)
    Deposit Type 1

    Future Value
    Annual Deposit $172,790
    ($7,000)
    ($8,000)
    ($9,000)
    ($10,000)
    ($11,000)
    ($12,000)
    ($13,000)

    Page 3
    Future Value (Data Table)

    f an Investment

    Page 4
    Future Value (Data Table 2)

    Interest Rate 5% The Future Value of an Investme


    Period 10
    Annual Deposit ($10,000)
    Initial Deposit ($25,000)
    Deposit Type 1
    Inflation 2%
    Future Value Today's Dollars
    Annual Deposit $172,790 $141,748
    ($7,000)
    ($8,000)
    ($9,000)
    ($10,000)
    ($11,000)
    ($12,000)
    ($13,000)

    Page 5
    Future Value (Data Table 2)

    e of an Investment

    Page 6
    653130708.xlsx

    Interest Rate 5% The Future Value of an Investment


    Period 10
    Annual Deposit ($10,000)
    Initial Deposit ($25,000)
    Deposit Type 1
    Interest Rate
    $172,790 5% 5.5% 6% 6.5%
    ($7,000)
    ($8,000)
    Annual ($9,000)
    Deposit ($10,000)
    ($11,000)
    ($12,000)
    ($13,000)

    Page 7
    653130708.xlsx

    an Investment

    7%

    Page 8
    653130708.xlsx

    Equipment Fund Calculation

    Interest Rate 5%
    Period 5
    Annual Deposit $0

    Equipment Fund $0

    Page 9
    653130708.xlsx

    Using Goal Seek to Determine a Price


    That Will Return a Margin Of 30%

    Price per Unit $1.00


    Units Sold 100,000
    Average Discount 40%
    Total Revenue $60,000

    Costs per Unit $12.63


    Fixed Costs $750,000
    Total Costs $2,013,000

    Profit ($1,953,000)
    Margin -3255.00%

    Page 10
    653130708.xlsx

    Using Goal Seek to Determine a Break-Even Point

    Price per Unit $47.95


    Units Sold 100,000
    Average Discount 40%
    Total Revenue $2,877,000

    Costs per Unit $12.63


    Fixed Costs $750,000
    Total Costs $2,013,000

    Profit $864,000
    Margin 30.03%

    Page 11
    Equations

    x Equation
    0.00000 12.80000

    (3x - 8)2(x - 1)
    ——————— = 1
    4x2 - 5

    Page 12
    Scenarios

    Mortgage Analysis
    Fixed Cells:
    House Price $100,000
    Interest Rate 4.00%

    Changing Cells:
    Down Payment $20,000
    Term 20
    Paydown ($100)

    Results: Regular Mortgage With Paydown


    Monthly Payment ($484.78) ($584.78)
    Total Paid ($116,348.22) ($106,986.75)
    Total Savings #N/A $9,361.47
    Revised Term #N/A 15.2

    Page 13

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