Friday’s Bell Ringer Refresh your webpage!

Slides:

Advertisements

Similar presentations

Webinar: Financial Functions – FV Function With each payment made on a loan, a proportion of that goes to interest. How much does? Use the IPMT function.

Advertisements

How to Calculate Present Value & Future Value Using Microsoft Excel ACCT 2154 Chapter 7.

Compound Interest. Does anyone have any interest in interest? Very few banks today pay interest based on the simple interest formula. Instead, they pay.

FIN 614: Financial Management Larry Schrenk, Instructor.

7-8 simple and compound interest

FIN 614: Financial Management Larry Schrenk, Instructor.

Formulas for Loans, Mortgages and Savings accounts Bernard Liengme January 2012.

Lesson 3-3 Example Solve. Daniel put $1,500 into a savings account. The simple interest rate is 4.5%. How much interest will Daniel earn in 1 month?

MONTHLY PAYMENTS The situation – Buying a Car  You want to buy a car that costs $10,000 and are planning on putting $1,000 down. Pretend it’s a.

Financial Functions. Working with Loans and Investments =PMT(rate, nper, pv, [fv=0] [type=0]) =FV(rate, nper, pmt, [pv=0] [type=0]) =NPER(rate, pmt, pv,

Bell Ringer Calculate the average of the following list of numbers What did you do over thanksgiving?

BACK TO THE FUTURE THE TIME VALUE OF MONEY. Future Value Investment Interest or Yield Yield 10% Investment $1, ___x ___ 10 =.1== $100 Annual.

INTEREST. SOME TERMS Principal: the original amount before interest charges are added on Term: how long the investment is invested for Inflation: refers.

5-0 Present Values – 5.2 How much do I have to invest today to have some specified amount in the future? FV = PV(1 + r) t Rearrange to solve for PV = FV.

Webinar: Financial Functions – NPER Function Given the total of the loan to be repaid, or target to be saved, the interest rate and how much is to be paid.

The Time Value of Money Lesson Starter Objectives Students will be able to –Use a formula to find the future value of a series of payments –Use.

Bell Ringer October 14, 2010 y = 7 – 2x 4x + y = 5 Step 1: Put the equations in Standard Form. 2x + y = 7 4x + y = 5 Step 2: Determine which variable to.

Time Value of Money. Future Value of Money n The value of an investment after it has been compounded with interest for a specific period of time n FV.

The Time Value of Money. Future Value Investment Interest or Yield Yield 10% Investment $1, ___x ___ 10 =.1== $100 Annual Yield 10% = 50%

Annuity investments demand regular equal deposits into an investment.

Future Value of an Ordinary Simple Annuity Annuity - Series of equal payments or deposits earning compound interest and made at regular intervals over.

CDAE Class 06 Sept. 13 Last class: 2. Review of economic and business concepts Quiz 1 Today: Result of Quiz 1 2. Review of economic and business.

PMT and What if analysis. PMT  The Microsoft Excel PMT function returns the payment amount for a loan based on an interest rate and a constant payment.

Chapter 1 Appendix Time Value of Money: The Basics Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

Determine the amount saved if $375 is deposited every month for 6 years at 5.9% per year compounded monthly. N = 12 X 6 = 72 I% = 5.9 PV = 0 PMT = -375.

Chapter 5 The Time Value of Money— The Basics. Copyright ©2014 Pearson Education, Inc. All rights reserved.5-2 Slide Contents Learning Objectives Principles.

Compound Interest. homework Worksheet: Compound Interests.

Lesson 2 – Annuities Learning Goal I can solve for the future value of an annuity.

Future & Present Value of an Annuity UNIT 6 FINANCE.

PMT and What if analysis. PMT  The Microsoft Excel PMT function returns the payment amount for a loan based on an interest rate and a constant payment.

Please write down the 4 questions. Use the chart on the next slide to answer. We will turn in Warm-ups on Friday… 1.If you start saving at the age of 20,

Ch. 5: Discounted Cash Flow Valuation

Time Value of Money Annuity.

Time Value of Money Basics and Building Blocks

Business Mathematics 5 types of transactions / questions

Chapter 5 Discounted Cash Flow Valuation

Formulas for Compound Interest

Chapter 3 Mathematics of Finance

Financial Functions This lecture will cover the use of some basic functions provided by EXCEL. We will be explore how these functions work and how they.

Compound Interest.

What’s the FV of an initial $100 after 3 years if i = 10%?

PMT and What if analysis

Grauer and Barber Series Microsoft Excel Chapter Three

3-8 PRESENT VALUE OF INVESTMENTS

Saving and Investing Chapters in Text.

Using The TVM Solver On The Calculator

Compound Interest.

Bell Ringer I will not answer questions about the Bell Ringer

Problem-Solving Steps Solve Problem-Solving Steps Solve

Q1 Find the PV of perpetuity, then discount into Year 0 terms

Annuities Student Handout

Unit #4: Sequences & Series

Bell Ringer Solve for x. 4 = 2x – x + 2 = 14

Financial Management: Principles & Applications

Evaluate each expression if n = 3, p = -2, and q = 6.

Bell Ringer Use the Distributive Property to solve #1 and #2.

WARMUP John deposits $3,300 in an account paying 6% interest, compounded daily. What is the balance in 2 years? a) Daniella deposits $4,000 in an account.

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

Lesson 7 Objectives Use the IF function. Use the PMT and FV functions.

Put each equation into the form

Bell Ringer Use the Distributive Property to solve #1 and #2.

Solve for x in #1-3. #1. x + 9 = 15 #2. x – 2 = 10 #3. 6x = 30 #4

Put each equation into the form

Bell Ringer Solve for x. 4 = 2x – x + 2 = 14

9/18/ Bell Work Write and answer the following questions.

Evaluate each expression if n = 3, p = -2, and q = 6.

Retrieve Your Colored Folder |

Typing.com Search Strategies

Presentation transcript:

Friday’s Bell Ringer Refresh your webpage! Download the Examples file from my website. Type in the formulas to solve the worksheet. You have 8-10 minutes and you should use your notes, if needed.

Financial Function Examples =Function Name(R,T,P)—If Monthly, R/12 and T*12) Function Name = PMT (payment) or FV (future value)—R = APR Calculate the Monthly Payment R=5% T=30 years P=150000 T=15 years Calculate the Future Values R=8% T=30 years P=4000 per year P=500 per month

Formula Answers to Slide 2 Rate % Term (years) Principle Answer Total Saved or Invested 0.05 30 150000 =PMT(A2/12,B2*12,C2) =D2*360 15 =PMT(A3/12,B3*12,C3) =D3*180 0.08 4000 =FV(A4,B4,C4) =C4*B4 500 =FV(A5/12,B5*12,C5) =C5*360

Numeric Answers to Slide 2 Rate % Term (years) Principle or Investment Answer Total Saved or Invested 0.05 30 150000 ($805.23) ($289,883.68) 15 ($1,186.19) ($213,514.28) 0.08 4000 ($453,132.84) $120,000.00 500 ($745,179.72) $180,000.00