Description

Part 1
Questions 1 through 4 require you to type in the Excel built-in formulas to calculate the answer for each problem. Examples of the Excel formulas are included in the PDF of the video lectures for TVM-Future Value and TVM-Present Value. The Excel formulas must be entered into the Excel cells highlighted in light blue.

Question 5 is primarily an Excel functionality exercise. Complete the missing items in the table that are highlighted in light blue. The purpose of this exercise is to illustrate how to use the Excel built-in TVM functions and also how to calculate the same results using the equivalent algebraic formula. The exercise can be completed in a few seconds (Yes, seconds, not minutes) by appropriately copying the formulas from the portions of the table already filled in. If you are not familiar with Excel try to learn how to copy/paste formulas from cells and what ‘absolute cell reference’ and ‘relative cell reference’ mean.

Part 2
Please create an Excel file with the calculated answers to the questions to the Excel homework The questions are listed in the attached PDF file.

Please also go over the Excel file attached to this assignment in order to familiarize yourself with the different ways Excel can be used to solve Time Value of Money problems when multiple cash flows are involved. There are three worksheets in the Excel file. This Excel file with examples is just that: a file to show you some examples of using Excel to solve TVM problems. Do not confuse this posted Excel file with the separate Excel file you need to create and submit with the answers to this week’s homework questions. You should examine the formulas in the posted Excel file and use them as a guide when you create your new Excel file for submission.

Sample Solution