The Mathematics of Money

222 Chapter 5 Spreadsheets Building a Future Value Spreadsheet Template Both in working through the examples of this (and the fo ...

Copyright © 2008, The McGraw-Hill Companies, Inc. monthly payments is not all that far off of the future value with annual payme ...

224 Chapter 5 Spreadsheets The future value found in Example 5.2.3 could also have been calculated by using the techniques devel ...

that the cell address “B1” should not change when we copy the cells down. This is done by using a dollar sign in the cell addres ...

226 Chapter 2 Evaluating Projected Cash Flows This question is based on Exercise 1. How much interest will Khalil earn in the 2 ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Micah plans to deposit $2,500 into a retirement account this year. In future ...

a. Suppose I deposit $1,500 per year for 10 years into an account earning 6%. For the next 15 years I increase my deposits to $ ...

Copyright © 2008, The McGraw-Hill Companies, Inc. D4 “
C4-B4”, and in E4 “
E3-D4”. The second month’s row can then be copied for ...

230 Chapter 5 Spreadsheets We set up an amortization table for Javad’s loan just as in the previous example, using $1,800 as the ...

Copyright © 2008, The McGraw-Hill Companies, Inc. (a) How long will it take to pay off the loan if they only pay the scheduled $ ...

232 Chapter 5 Spreadsheets to pay less. It is fi ne for Ted and Kirsti (from Example 5.3.3) to pay any amount they like in any g ...

$25 a month is not enough to avoid negative amortization. Using the amortization table with this monthly payment, we can see tha ...

234 Chapter 5 Spreadsheets B. Using Spreadsheets to Find Payoff Time Brad’s mortgage has an $89,902.49 balance right now. The i ...

5.4 Solving Annuity Problems with Spreadsheets In the previous sections we have seen how spreadsheets can illustrate what we cal ...

236 Chapter 5 Spreadsheets We set up an amortization table, and look for her account balance to hit the target value. Rows Omitt ...

Copyright © 2008, The McGraw-Hill Companies, Inc. An interest rate of 9% reaches the goal, but overshoots it by quite a bit. Bry ...

238 Chapter 5 Spreadsheets We’ll just have to try something and see how it works, basing our future guesses on how it works out. ...

Copyright © 2008, The McGraw-Hill Companies, Inc. At the time of this writing, the current version of Excel’s Goal Seek feature ...

240 Chapter 5 Spreadsheets Rows Omitted 10 6$$2 000 00 1221 45 $778 55 $69 118 44 9 5 $2,000.00 $1,234.82 $765.18 $69,896.99 14 ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Rows Omitted 12 10 $285,565.66 $21,417.42 $21,349.68 $328,332.76 1 Rate: 7.50% ...