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Excel Prac-4 Solution

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21 views2 pages

Excel Prac-4 Solution

Uploaded by

Irish Nake
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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EXCEL SEM II 2023-24


Practical No. 4 Financial Functions: FV

1. A person invests ₹13500 every year in a savings account giving 6% p.a. rate of interest.
Find the total amount he would have saved at the end of eight years.

Solution:
Rate= 6%
nper = 8
pmt = −13500
pv = 0 (optional)
type=0(optional)
Type the formula, =FV(6%, 8 , −13500) → ENTER → ₹ 1,33,615.82
Note:
rate: interest rate should be written with % sign
pmt: Payment value should be entered negative

2. Find the future value of ₹4,30,000 after three years at 5% p.a. rate of interest.

Solution:
Rate= 5%
nper = 3
pmt = 0 (or leave blank)
pv = −430000
type=0(optional)

Type the formula, =FV(5%, 3, , −430000) → ENTER → ₹ 4,97,778.75


Note:
pv: Payment value should be entered negative

3. Mr. R plans to invest ₹72,000 every year for the next five years towards his daughter’s
higher education fund. There is already ₹50,000 in his bank account as savings. The bank
pays 7.5% p.a. interest on a savings account. Calculate the amount he would have saved
at the end of the next five years.
Solution:
Rate= 7.5%
nper = 5
pmt = −72000 (payment per year)
pv = −50000 (intial amount present in bank account)
type=0(optional)

Type the formula, =FV(7.5%,5,-72000,-50000) → ENTER → ₹ 4,89,985.62

4. Ms. A wants to save money to buy a car. The target is to buy it in 1 year. There is
₹3,00,000 in her bank account as savings. The bank pays 5% p.a. interest on a savings
account. Her plan is to add ₹20,000 per month for the next 12 months into the account.
Calculate the amount she would have at the end of the year to purchase the car.
Solution:
Rate= 5%/12 (divide by 12 since monthly)
nper = 12 (1year = 12months)
pmt = −20000 (payment per month)
pv = −300000 (intial amount present in bank account)
type=0(optional)
Type the formula, =FV(5%/12,12,-20000,-300000) → ENTER → ₹ 5,60,925.68

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