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Excel Solutions

Here is a spreadsheet with cell references that shows Madison earning $64 more interest than Emily over 4 years with a 10% interest rate and $1000 initial investments for each: | Year | Emily Interest | Emily Balance | Madison Interest | Madison Balance | |-|-|-|-|-| | 1 | =$1000*10%=$100 | =$1000+$100=$1100 | =$1000*10%=$100 | =$1000*(1+10%)=$1100 | | 2 | =B2*10%=$110 | =B2+$110=$1210 | =C3*10%=$110 | =C3*(1+10%)=$1210*(1+10%)=$1331

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Görkem Damdere
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119 views12 pages

Excel Solutions

Here is a spreadsheet with cell references that shows Madison earning $64 more interest than Emily over 4 years with a 10% interest rate and $1000 initial investments for each: | Year | Emily Interest | Emily Balance | Madison Interest | Madison Balance | |-|-|-|-|-| | 1 | =$1000*10%=$100 | =$1000+$100=$1100 | =$1000*10%=$100 | =$1000*(1+10%)=$1100 | | 2 | =B2*10%=$110 | =B2+$110=$1210 | =C3*10%=$110 | =C3*(1+10%)=$1210*(1+10%)=$1331

Uploaded by

Görkem Damdere
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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for english spreedsheet for Turkish spreedsheet

To find the present value P: = PV(i%, n, A, F) PV=BD


To find the future value F: = FV(i%, n, A, P) FV=GD
To find the equal, periodic value A: = PMT(i%, n, P, F) A= Devresel ödeme
To find the number of periods n: = NPER(i%, A, P, F) NPER:taksit sayısı
To find the compound interest rate i: = RATE( n, A, P, F) RATE: Oran
To find the compound interest rate i of any series: = IRR(first_cell:last_cell) IRR= iç_verim_oranı
To find the present value P of any series: = NPV(i%, second_cell:last_cell) + first_cell NPV:NBD
for Turkish spreedsheet

A= Devresel ödeme
NPER:taksit sayısı
RATE: Oran
IRR= iç_verim_oranı
A Japan-based architectural firm has asked a United States-based software engineering group to infuse GPS sensing capability via satellite in
monitoring software for high-rise structures in order to detect greater than expected horizontal movements. This software could be very bene
advance warning of serious tremors in earthquake-prone areas in Japan and the United States. The inclusion of accurate GPS data is estimate
annual revenue over that for the current software system by $200,000 for each of the next 2 years, and by $300,000 for each of years 3 and 4
planning horizon is only 4 years due to the rapid advances made internationally in building-monitoring software. Develop spreadsheets to an
questions below.

(a) Determine the total interest and total revenue after 4 years, using a compound rate of Return of 8% per year.
(b) Repeat part (a) if estimated revenue increases from $300,000 to $600,000 in years 3 and 4.
(c) Repeat part (a) if inflation is estimated to be 4% per year. This will decrease the real rate of return from 8% to 3.85% per year
find total in year 4
i= 8.00%

revenue during
revenue at the interest earned cumulative year with interest,
end of year end of year, $ during year, $ interest, $ $
0
1 200,000 $ - $ - $ 200,000.00
2 200,000 $ 16,000.00 $ 16,000.00 $ 216,000.00
3 300,000 $ 33,280.00 $ 49,280.00 $ 333,280.00
4 300,000 $ 59,942.40 $ 109,222.40 $ 359,942.40
$ 109,222.40 $ 1,109,222.40

revenue at the and of year: given data


interest earned during year: cumulative reveneu x interest rate
revenueduring year with interest: revenue at the end of year+interest earned
cumulative revenue: revenue during current year+cumulative revenue in previous year
cumulative
revenue with
interest, $

200,000
416,000
749,280
1,109,222

erest earned
enue in previous year
find total in year 4
i= 8.00%

end of revenue at the interest earned during revenue during year with
year end of year, $ year, $ cumulative interest, $ interest, $
0
1 200,000 $ - $ - $ 200,000.00
2 200,000 $ 16,000.00 $ 16,000.00 $ 216,000.00
3 600,000 $ 33,280.00 $ 49,280.00 $ 633,280.00
4 600,000 $ 83,942.40 $ 133,222.40 $ 683,942.40
$ 133,222.40 $ 1,733,222.40
cumulative revenue with
interest, $

200,000
416,000
1,049,280
1,733,222
find total in year 4
i= 3.85%

end of revenue at the end of interest earned during revenue during year with
year year, $ year, $ cumulative interest, $ interest, $
0
1 200,000 $ - $ - $ 200,000.00
2 200,000 $ 7,700.00 $ 7,700.00 $ 207,700.00
3 300,000 $ 15,696.45 $ 23,396.45 $ 315,696.45
4 300,000 $ 27,850.76 $ 51,247.21 $ 327,850.76
$ 51,247.21 $ 1,051,247.21
cumulative revenue
with interest, $

200,000
407,700
723,396
1,051,247
a P=$5,000 n= 5 years i=5% per year b p=$5,000 n=3 years

A=? -₺1,154.87 F=? ₺6,125.22

Please read the formula sheet and then solve the questions
i= 7% per year

-₺1,905.26
Emily and Madison both invest $1000 at 10% per
year for 4 years. Emily receives simple interest and
Madison gets compound interest. Use a spreadsheet
and cell reference formats to develop relations that
show a total of $64 more interest for Madison at the
end of the 4 years. Assume no withdrawals or further
deposits are made during the 4 years.

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