Time Value on Excel (Using the Function (fx) Wizard)

note: click on the cell next to the question mark to see the formula.

Future Value:
If I deposit $100 in an account earning 10% per year, how much will my
deposit be worth after 5 years?

PV $ (100.00)
I 10.00%
n 5
FV? $161.05

What if we had the same problem but interest is compounded monthly?

PV $ (100.00)
I 0.83%
n 60
FV? $164.53

***Note: Change the values of any variable other than that being solved for to view changes***
Time Value on Excel (Using the Function (fx) Wizard)
note: click on the cell next to the question mark to see the formula.

Present Value:
How much would I need to deposit today in an account earning 10% per year
in order to accumulate $10,000 after 5 years?

FV $(10,000.00)
I 10.00%
n 5
PV? $6,209.21

What if my interest was compounded monthly?

FV $(10,000.00)
I 0.83%
n 60
PV? $6,077.89

***Note: Change the values of any variable other than that being solved for to view changes***
Time Value on Excel (Using the Function (fx) Wizard)
note: click on the cell next to the question mark to see the formula.

Future Value of an Annuity:

How much would I have in my retirement account if I deposited $2000 each
year for 35 years and I earned 10% on my savings? What about $4,000?

PMT $ (2,000.00) PMT $ (4,000.00)

I 10.00% I 10.00%
n 35 n 35
FVA? $542,048.74 FVA? $1,084,097.47

Instead, what if I made monthly deposits of $166.67? How about monthly deposits of $333.33?

PMT $ (166.67) PMT $ (333.33)

I 0.83% I 0.83%
n 420 n 420
FVA? $632,785.66 FVA? $1,238,851.38

***Note: Change the values of any variable other than that being solved for to view changes***
Time Value on Excel (Using the Function (fx) Wizard)
note: click on the cell next to the question mark to see the formula.

Future Value of an Annuity Due:

How much would I have in my retirement account if I deposited $2000 at the beginning of each
year for 35 years and I earned 10% on my savings? What about $4,000?

PMT $ (2,000.00) PMT $ (4,000.00)

I 10.00% I 10.00%
n 35 n 35
FVA? $542,048.74 FVA? $1,084,097.47
FVAD? $596,253.61 FVAD? $1,192,507.22

Instead, what if I made beginning of the month deposits of $166.67? How about monthly deposits of $333.33?

PMT $ (166.67) PMT $ (333.33)

I 0.83% I 0.83%
n 420 n 420
FVA? $632,785.66 FVA? $1,238,851.38
FVAD? $638,058.88 FVAD? $1,249,089.82

***Note: Change the values of any variable other than that being solved for to view changes***
posits of $333.33?
Time Value on Excel (Using the Function (fx) Wizard)
note: click on the cell next to the question mark to see the formula.

Present Value of an Annuity:

How much could I afford to borrow for a home if I can make monthly payments of $12,000
per year for 30 years at 8%? What about monthly payment of $1,000?

PMT $ 12,000.00 PMT $ 1,000.00

I 8.00% I 0.67%
n 30 n 360
PVA? ($135,093.40) PVA? ($136,283.49)

What if I wanted to know what my montlhy payments would be a $20,000 car loan over
five years at 8%?

PV $ 20,000.00
I 0.67%
n 60
PVA? ($405.53)

***Note: Change the values of any variable other than that being solved for to view changes***
Time Value on Excel (Using the Function (fx) Wizard)
note: click on the cell next to the question mark to see the formula.

Present Value of an Annuity:

How much could I afford to borrow for a home if I can make annual payments of $12,000
per year for 30 years at 8%? What about monthly payment of $1,000?

PMT $ 12,000.00 PMT $ 1,000.00

I 8.00% I 0.67%
n 30 n 360
PVA? ($135,093.40) PVA? ($136,283.49)
PVAD? ($145,900.87) PVAD? ($137,192.05)

What if I wanted to know what my montlhy payments would be a $20,000 car loan over
five years at 8%?

PV $ 20,000.00
I 0.67%
n 60
PVA? ($405.53)
PVAD? ($402.84)

***Note: Change the values of any variable other than that being solved for to view changes***
Time Value on Excel (Using the Function (fx) Wizard)
note: click on the cell next to the question mark to see the formula.

Unequal Cash Flows:

a) Present Value
How much must I deposit today to receive $100 in year 1,$ 200 in year 2, $300 in year 3,
and $400 in year four if I can earn 10% on my deposits?

PVIF at
Year FV 10% PV of CFn
1 $ 100 0.90909 $ 90.91
2 200 0.82645 165.29
3 300 0.75131 225.39
4 400 0.68301 273.21

Present Value of Unequal Cash Flows $ 754.80

b) Future Value
What will my bank account be worth if I deposit $100 in year 1, $200 in year 2, $300 in year 3
and $400 in year 4 if I can earn 10% on my deposits?
FVIF at
Year FV 10% FV of CFn
1 $ 100 1.10000 $ 110.00
2 200 1.21000 242.00
3 300 1.33100 399.30
4 400 1.46410 585.64

Future Value of Unequal Cash Flows $ 1,336.94

***Note: Change the values of any variable other than that being solved for to view changes***