Question

Examples are needed for each of the following

Future Value Function: FV = PV * (1+i)^n

Annuity Function: pmt: ((1/i)-(1/(i(1+i)^n))

Present Value Function: =pv(rate,nper,pmt,[fv], [type]

Future Value Function: =fv(rate,nper,pmt,[pv],[type]

Number of Periods Function: =nper(rate,pmt,pv,[fv],[type])

Interest Rate Function: =rate(nper,pmt,pv,[fv],[type],[guess])

Answer 1

(i)

Where:

FV = the future value of money
PV = the present value
i = the interest rate or other return that can be earned on the money
t = the number of years to take into consideration
n = the number of compounding periods of interest per year

Using the formula above, let’s look at an example where you have $5,000 and can expect to earn 5% interest on that sum each year for the next two years. Assuming the interest is only compounded annually, the future value of your $5,000 today can be calculated as follows:

FV = $5,000 x (1 + (5% / 1) ^ (1 x 2) = $5,512.50

(ii)

Annuity Formula

FV=PMT(1+i)((1+i)^N - 1)/i

 where
          PV = present value
          FV = future value
          PMT = payment  per period
          i = interest rate in percent per period
          N = number of periods

example

          PMT = $200 per month
          i = 15% per year = 1.25% per month = 0.0125
          N = 30 years = 360 months
          

(iii)

rate	5%
nper	2
pmt	100
FV	0
PV	₹ 185.94

PV =(RATE,NPER,PMT,FV,TYPE)

PV =(5%,2,100,0)

(iv)

rate	5%
nper	2
pmt	100
PV	0
FV	₹ 205.00

FV =(RATE,NPER,PMT,PV,TYPE)

FV=(5%,2,100,0)

(v)

rate	5%
pmt	100
PV	0
FV	₹ 205.00
nper	2

NPER =(RATE,PMT,PV,FV)

NPER =(5%,100,0,205)

(vi)

nper	2
pmt	100
PV	0
FV	₹ 205.00
rate	5%

RATE =(NPER,PMT,PV,FV)

RATE =(2,100,0,205)