Calulation of PV value of an investment

Discount rate
0.1
Present value
379.0786769408

Year

Cash flow
1
2
3
4
5

100
100
100
100
100

Calculation of PV at the beginning of 0 year

Discount rate
0.1
Present value
-20.9213230592

Year

Cash flow
0
1
2
3
4
5

-400
100
100
100
100
100

Calcualation of internal rate of return of an investement

IRR
0.0793082612
Present value
1.38584255E-010

Year

Cash flow
0
1
2
3
4
5

-400
100
100
100
100
100

Loan of Rs 1000
Cost
IRR
Loan Table

1000
0.2443607688

Principle at the
beginning of the
year

Year
1
2
3
4
5
6

1000
944.3607688346
975.1254923642
1063.407907388
723.2630812227
0.0002038199

Payment at the
end of the year

Division of
payment
between interest
and return of
principle

Interest
300 244.3607688346
200 230.7647235296
150 238.2824150243
600 259.8551738342
900 176.7371225972
4.9805585E-005

Multiple internal rate of return

Discount rate
NPV

0.06
-3.9854362682
Cash

Year
0
1
2
3
4
5
IRR

Flat payment schedule

Loan Principal
Rate
Loan Term
Annual Payment

-145
100
100
100
100
-275
0.0878282738
0.2664950072

10000
0.07
6 Numer of years of the loan
2097.957997583 Payment to be made at the end of each year

Payment at the
end of the year

Year
1
2
3
4
5
6
Simple Futute Value
Interest

10000
8602.04
7106.2228
5505.698396
3793.13728372
1960.69689358

S
re plit
pa tu p
ym rn ay
m
en of i e
n
n
t
te t i
re nt

Principal at the
beginning of the
year

2097.96
2097.96
2097.96
2097.96
2097.96
2097.96

0.1
Account bal
beginning of the
year

Interest at the
end of the year

Year
0
1
2
3
4
5
6
7
8
9
10
Simple way
Future value with annual deposit
Interest

1000.00
1100.00
1210.00
1331.00
1464.10
1610.51
1771.56
1948.72
2143.59
2357.95
2593.74

100.00
110.00
121.00
133.10
146.41
161.05
177.16
194.87
214.36
235.79
259.37

2593.74

0.1
Account bal at the Deposit at the
beginning of the beginning of the
year
year

year
0
1
2
3

0.00
1100.00
2310.00
3641.00

1000
1000
1000
1000

4
5
6
7
8
9
10

5105.10
6715.61
8487.17
10435.89
12579.48
14937.42
17531.17

Future value
A reteirement problem
Interest
Annual deposit
Annual deposit widthral

1000
1000
1000
1000
1000
1000

17531.17

8%
48000
30000
Year

Account balance
at the beginning
of the year

Deposit at the
beginning of the
year

0
1
2

0.00
31737.47
66013.95

29386.55
29386.55
29386.55

103032.54

29386.55

4
5
6
7
8
9
10
11
12

143012.61
186191.10
168686.38
149781.29
129363.80
107312.90
83497.93
57777.77
29999.99

29386.55
-30000
-30000
-30000
-30000
-30000
-30000
-30000
-30000

Solving retirement problem by financial formula

Numerator
Denominator
Annual Deposit

126718.54
4.31
29386.55

Multiple compounding periods

Initial Deposit
Interest rate
Number of compoun

1000
5%
2

Interest per compo

Acreation in one y
Continous compoun

2.50%
1050.625
1051.271

Principle at the beginning of the year

Principle
55.639231
-30.764724
-88.282415
340.14483
723.26288

e end of each year

Year
0
1
2
3
4
5

-1000
300
200
150
600
900

IRR

0.2443607426

DATA TABLE
DISCOUNT RATE

0
0.03
0.06
0.09
0.12
0.15
0.18
0.21
0.24
0.27
0.3
0.33
0.36
0.39

S
re plit
pa tu p
ym rn ay
m
en of i e
n
n
t
te t i
re nt
st o
an
d

700
602.1428
497.4356
385.39889
265.51961
137.24878

1397.96
1495.8172
1600.5244
1712.5611
1832.4404
1960.7112

Total bal at
the end of
the year
1100.00
1210.00
1331.00
1464.10
1610.51
1771.56
1948.72
2143.59
2357.95
2593.74
2853.12

Interest
earned
during the
year
100.00
210.00
331.00
464.10

Total in
account at
the end of
the year
1100.00
2310.00
3641.00
5105.10

610.51
771.56
948.72
1143.59
1357.95
1593.74

Interest
earned
during the
year

6715.61
8487.17
10435.89
12579.48
14937.42
17531.17

Total
amount at
the end of
the year

2350.924 31737.47
4889.9219 66013.95
7632.0397 103032.54

Solvng the prolem by using goal seek

10593.527 143012.61

Expected to retire
Expected monthly expenses after
reteirement after reteirement

13791.933
12495.288
11094.911
9582.5035
7949.1038
6185.0321
4279.8346
2222.2214
-0.0008693

186191.10
168686.38
149781.29
129363.80
107312.90
83497.93
57777.77
29999.99
-0.01

Current age

Expected return on
Expected inflation
Yearly expenses at retirement
How much do we save per year
Annuity generated by this yearly savings

Number of pe
End year accreation
1 1050.000
2 1050.625
10 1051.140
1051.500
1051.000

20
50
100
150
300
800

1051.206
1051.245
1051.258
1051.262
1051.267
1051.269

1051.500
1051.000
1050.500
1050.000
1049.500
1049.000
0

Payment
at the end
of the year

NVP
-3.985436

arly savings

56
60
30000

8%
6.50%
45000

Column F

10