Homework Answers
| FUTURE VALUE OF MONEY | ||
| 8 | ||
| YEARS | AMOUNT DEPOSITED | FUTURE VALUE |
| 1 | $ 500.00 | $ 949.15 |
| 2 | $ 1,800.00 | $ 3,223.53 |
| 3 | $ - | |
| 4 | $ - | |
| 5 | $ 1,000.00 | $ 1,503.63 |
| $ 5,676.31 | ||
| 9 | ||
| YEARS | AMOUNT DEPOSITED | FUTURE VALUE |
| 1 | $ 5,000.00 | $ 5,200.00 |
| 2 | $ 5,000.00 | $ 5,408.00 |
| 3 | $ 5,000.00 | $ 5,624.32 |
| 4 | $ 5,000.00 | $ 5,849.29 |
| 5 | $ 5,000.00 | $ 6,083.26 |
| TOTAL EXISTING BALANCE | $ 28,164.88 | |
| NEW BALANCE | $ 15,000.00 | |
| TOTAL BALANCE | $ 43,164.88 | |
| CUMULATIVE BALANCE AFTER 10 YEARS @8% | $ 93,189.73 | |
| 10 | ||
| YEARS | AMOUNT DEPOSITED | FUTURE VALUE |
| 0 | $ 5,000.00 | $ 9,627.07 |
| 1 | $ 5,500.00 | $ 9,289.28 |
| 2 | $ 6,050.00 | $ 8,963.34 |
| 3 | $ 6,655.00 | $ 8,648.84 |
| 4 | $ 7,320.50 | $ 8,345.37 |
| 5 | $ 8,052.55 | $ 8,052.55 |
| $ 52,926.45 |
| 11 | MONTHLY INSTALLMENTS | $ 694.44 | |||
| MONTHS | OPENING BALANCE | INTEREST | INSTALLMENT | TOTAL INTEREST + PRINCIPAL | CLOSING BALANCE |
| 1 | $ 250,000.00 | $ 2,083.33 | $ 694.44 | $ 2,777.78 | $ 247,222.22 |
| 2 | $ 247,222.22 | $ 4,120.37 | $ 694.44 | $ 4,814.81 | $ 242,407.41 |
| 3 | $ 242,407.41 | $ 6,060.19 | $ 694.44 | $ 6,754.63 | $ 235,652.78 |
| 4 | $ 235,652.78 | $ 7,855.09 | $ 694.44 | $ 8,549.54 | $ 227,103.24 |
| 5 | $ 227,103.24 | $ 9,462.64 | $ 694.44 | $ 10,157.08 | $ 216,946.16 |
| 6 | $ 216,946.16 | $ 10,847.31 | $ 694.44 | $ 11,541.75 | $ 205,404.41 |
| 7 | $ 205,404.41 | $ 11,981.92 | $ 694.44 | $ 12,676.37 | $ 192,728.04 |
| 8 | $ 192,728.04 | $ 12,848.54 | $ 694.44 | $ 13,542.98 | $ 179,185.06 |
| 9 | $ 179,185.06 | $ 13,438.88 | $ 694.44 | $ 14,133.32 | $ 165,051.74 |
| 10 | $ 165,051.74 | $ 13,754.31 | $ 694.44 | $ 14,448.76 | $ 150,602.98 |
| 11 | $ 150,602.98 | $ 13,805.27 | $ 694.44 | $ 14,499.72 | $ 136,103.26 |
| 12 | $ 136,103.26 | $ 13,610.33 | $ 694.44 | $ 14,304.77 | $ 121,798.49 |
| $ 119,868.17 | $ 8,333.33 | $ 128,201.51 |
SHOW FORMULA IN EXCEL:
8
| AMOUNT DEPOSITED | FUTURE VALUE |
| 500 | =+B6*1.06^11 |
| 1800 | =+B7*1.06^10 |
| 0 | |
| 0 | |
| 1000 | =+B10*1.06^7 |
| =SUM(C6:C10) |
9
| YEARS | AMOUNT DEPOSITED | FUTURE VALUE |
| 1 | 5000 | =+B17*1.04^A17 |
| 2 | 5000 | =+B18*1.04^A18 |
| 3 | 5000 | =+B19*1.04^A19 |
| 4 | 5000 | =+B20*1.04^A20 |
| 5 | 5000 | =+B21*1.04^A21 |
| TOTAL EXISTING BALANCE | =SUM(C17:C21) | |
| NEW BALANCE | 15000 | |
| TOTAL BALANCE | =SUM(C22:C23) | |
| CUMULATIVE BALANCE AFTER 10 YEARS @8% | =+C24*1.08^10 |
10
| YEARS | AMOUNT DEPOSITED | FUTURE VALUE |
| 0 | 5000 | =+B31*1.14^5 |
| 1 | =+B31*1.1 | =+B32*1.14^4 |
| 2 | =+B32*1.1 | =+B33*1.14^3 |
| 3 | =+B33*1.1 | =+B34*1.14^2 |
| 4 | =+B34*1.1 | =+B35*1.14^1 |
| 5 | =+B35*1.1 | =+B36*1.14^0 |
| =SUM(C31:C36) |
11
| MONTHS | OPENING BALANCE | INTEREST | INSTALLMENT | TOTAL INTEREST + PRINCIPAL | CLOSING BALANCE |
| 1 | 250000 | =+B42*0.00833333333333333*A42 | =250000/30/12 | =+C42+D42 | =+B42-E42 |
| 2 | =+F42 | =+B43*0.00833333333333333*A43 | =250000/30/12 | =+C43+D43 | =+B43-E43 |
| 3 | =+F43 | =+B44*0.00833333333333333*A44 | =250000/30/12 | =+C44+D44 | =+B44-E44 |
| 4 | =+F44 | =+B45*0.00833333333333333*A45 | =250000/30/12 | =+C45+D45 | =+B45-E45 |
| 5 | =+F45 | =+B46*0.00833333333333333*A46 | =250000/30/12 | =+C46+D46 | =+B46-E46 |
| 6 | =+F46 | =+B47*0.00833333333333333*A47 | =250000/30/12 | =+C47+D47 | =+B47-E47 |
| 7 | =+F47 | =+B48*0.00833333333333333*A48 | =250000/30/12 | =+C48+D48 | =+B48-E48 |
| 8 | =+F48 | =+B49*0.00833333333333333*A49 | =250000/30/12 | =+C49+D49 | =+B49-E49 |
| 9 | =+F49 | =+B50*0.00833333333333333*A50 | =250000/30/12 | =+C50+D50 | =+B50-E50 |
| 10 | =+F50 | =+B51*0.00833333333333333*A51 | =250000/30/12 | =+C51+D51 | =+B51-E51 |
| 11 | =+F51 | =+B52*0.00833333333333333*A52 | =250000/30/12 | =+C52+D52 | =+B52-E52 |
| 12 | =+F52 | =+B53*0.00833333333333333*A53 | =250000/30/12 | =+C53+D53 | =+B53-E53 |
| =SUM(C42:C53) | =SUM(D42:D53) | =SUM(E42:E53) |
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