Question

Please give me the excel formulas for these so i can study them

I don't need calculations just the formula and the name of it. maybe a brief sentence.

an investment pays 7710.02 (F51)

at the end of every year for 39 years (F52)

interest rate is 13.17% (F53)

what is this investment worth today?

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you hope to earn a "ly" (yearly?) income of 701.38 (F59)

interest rate you will earn on yor investments is 14.39% (F60)

You expect to live for 21 years (F61)

How much should you have invested at the beginning of retirement so you achieve your target income and it lasts as long as you live?

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You want to know the price of a security

the security makes payments of $887,422.24 (F67)

Once every year for 46 years (F68)

Interest rate is 11.43% (F69)

how much should the security cost?

Thanks so much. I'll upvote

Answer 1

1. It requires to calculate the Present value of Annuity payment, Use following Excel formula to calculate present worth investment.

where,

rate = Interest rate per payment period i.e 13.71% in above case

nper = No. of Annual payment i.e 39 in above case

pmt = Annual payment i.e -7710.02

fv = future value i.e 0 in above case

{0,1} = 0, if payment made at end of each period otherwise 1. in above case select 0.

2.

It requires to calculate the Present value of Annuity payment, Use following Excel formula to calculate present worth investment.

where,

rate = Interest rate per payment period i.e 14.39% in above case

nper = No. of Annual payment i.e 21 in above case

pmt = Annual payment i.e -701.38

fv = future value i.e 0 in above case

{0,1} = 0, if payment made at end of each period otherwise 1. in above case select 0.

3.

It requires to calculate the Present value of Annuity payment, Use following Excel formula to calculate present worth investment.

where,

rate = Interest rate per payment period i.e 11.43% in above case

nper = No. of Annual payment i.e 46 in above case

pmt = Annual payment i.e -887,422.38

fv = future value i.e 0 in above case

{0,1} = 0, if payment made at end of each period otherwise 1. in above case select 0.

Please note : "PV" function always enter PMT (payment) with negative sign to get positive result.

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -