RossEssentials10eChapter04ExcelMasterstudentversion

.xlsx
by Brad Jordan and Joe Smolira Version 10.0 Chapter 4 In these spreadsheets, you will learn how to use the follow The following conventions are used in these spreadsheets: 1) Given data in blue 2) Calculations in red NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-In" be installed in Excel. To install these, click on the File button then "Options," "Add-Ins" and select "Go." Check "Analysis ToolPak" and "Solver Add-In," then click "OK." Ross, Westerfield, and Jordan's Excel Master Essentials of Corporate Finance , 10th edition FV PV Two-way data tables RATE NPER FVSCHEDULE
wing Excel functions: :
Chapter 4 - Section 1 Future Value and Compounding Excel contains numerous financial functions, many of which relate to the time value of mo Example 4.1: Interest on Interest Suppose you have the following investment opportunity for two years: Interest rate per year: 14.0% Initial investment: $ 325 How much will you have at the end of the investment? How much is simple interest? At the end of one year, you will have: $ 370.50 At the end of the investment you will have: $ 422.37 The total interest earned is: $ 97.37 Interest on original investment per year: $ 45.50 Total simple interest: $ 91.00 Total compound interest: $ 6.37 Initial investment: $100 Interest rate per year: 10% Year 1 $ 100.00 $ 10.00 $ 0.00 $ 10.00 2 110.00 10.00 1.00 11.00 3 121.00 10.00 2.10 12.10 4 133.10 10.00 3.31 13.31 5 146.41 10.00 4.64 14.64 Totals $ 50.00 $ 11.05 $ 61.05 As shown in the textbook, the future value of $1 is found by the equation FV = $1 ´ (1 + r What is the value of the investment each year over the next 5 years? How much of the int question with the following table: Beginning Amount Simple Interest Compound Interest Total Interest
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