Chapter 15: Creating Formulas for Financial Applications
349
This formula returns $2,432.75, which represents the total of your deposits ($2,400) plus the
interest ($32.75). The last argument for the FV function is 1 , which means that you make pay-
ments at the beginning of the month. Figure 15.14 shows a worksheet set up to calculate annuities.
Table 15.4 describes the contents of this sheet.FIGURE 15.14This worksheet contains formulas to calculate annuities.
On the CD
The workbook shown in Figure 15.14 is available on the companion CD-ROM. The file is named annuity
calculator.xlsx.
TABLE 15.4The Annuity Calculator Worksheet
Cell Formula Description
B4 None (input cell) Initial investment (can be 0)
B5 None (input cell) The amount deposited on a regular basis
B6 None (input cell) The number of deposits made in 12 months
B7 None (input cell) TRUE if you make deposits at the beginning of period; FALSE otherwise
B10 None (input cell) The length of the investment, in years (can be fractional)
continued