Time Value on Excel (Using the Financial Function (fx) Wizard)

Clink links below:

Future Value
Present Value
Future Value of an Annuity
Future Value of an Annuity Due
Present Value of an Annuity
Present Value of an Annuity Due
Unequal Cash Flows

Time Value on Excel (Using the Financial Function (fx) Wizard)

Future Value: =FV()

If I deposit $100 into an account earning 10% per year, how much will my deposit be
worth after 5 years?
PV :

I:

(100.00)
10.00%

n:

FV?

161.05

What if we had the same problem but interest is compounded monthly?

PV :

(100.00)

I:

0.83%

n:

60

FV?

164.53

*** Note: Change values in 'PV' 'I' and 'n' to solve for FV ***

Time Value on Excel (Using the Financial Function (fx) Wizard)

Present Value: =PV()

How much would I need to deposit today in an account earning 10% per year in order to
accumulate $10,000 after 5 years?
FV :

I:

(10,000.00)
10.00%

n:

PV?

6,209.21

What if my interest was compounded monthly?

FV :

(10,000.00)

I:

0.83%

n:

60

PV?

6,077.89

*** Note: Change values in 'FV' 'I' and 'n' to solve for PV ***

Time Value on Excel (Using the Financial Function (fx) Wizard)

Return

Future Value of an Annuity: =FV()

How much would I have in my retirement account if I deposited $2000 each year for 35 years and I earned 10% on
my savings? What about $4,000?
PMT :

(2,000.00)

PMT :

I:

10.00%

I:

10.00%

n:

35

n:

35

FVA?

542,048.74

(4,000.00)

FVA?

$ 1,084,097.47

Instead, what if I made monthly deposits of $166.67? How about monthly deposits of $333.33?
PMT :
I:
n:
FVA?

(166.67)

PMT :

0.83%

I:

420

n:
$

632,785.66

*** Note: Change values in 'PMT' 'I' and 'n' to solve for FVA ***

FVA?

(333.33)
0.83%
420
$ 1,238,851.38

Time Value on Excel (Using the Financial Function (fx) Wizard)

Return

Future Value of an Annuity Due: =FV()

How much would I have in my retirement account if I deposited $2000 at the beginning of each year for 35 years and I
earned 10% on my savings? What about $4,000?
PMT :

(2,000.00)

PMT :

(4,000.00)

I:

10.00%

I:

10.00%

n:

35

n:

35

FVA?

542,048.74

FVA?

$ 1,084,097.47

FVAD?

596,253.61

FVAD?

$ 1,192,507.22

Instead, what if I made beginning of the month deposits of $166.67? How about monthly deposits of $333.33?
PMT :
I:
n:

(166.67)

PMT :

0.83%

I:

420

n:

(333.33)
0.83%
420

FVA?

632,785.66

FVA?

$ 1,238,851.38

FVAD?

638,058.88

FVAD?

$ 1,249,089.82

*** Note: Change values in 'PMT' 'I' and 'n' to solve for FVA ***

Time Value on Excel (Using the Financial Function (fx) Wizard)

Return

Present Value of an Annuity: =PV()

How much could I afford to borrow for a home if I can make monthly payments of $12,000 per year for 30 years at
8%? What about monthly payment of $1,000?
PMT :

(12,000.00)

PMT :

I:

8.00%

I:

n:

30

n:

PVA?

135,093.40

PVA?

(1,000.00)
0.67%
360
$

What if I wanted to know what my montlhy payments would be a $20,000 car loan over five years at 8%?
PMT :

(20,000.00)

I:

0.67%

n:

60

PVA?

405.53

*** Note: Change values in 'PMT' 'I' and 'n' to solve for PVA ***

136,283.49

Time Value on Excel (Using the Financial Function (fx) Wizard)

Return

Present Value of an Annuity Due: =PV()

How much could I afford to borrow for a home if I can make annual payments of $12,000 per year for 30 years at 8%?
What about monthly payment of $1,000?
PMT :

(12,000.00)

PMT :

I:

8.00%

I:

n:

30

n:

(1,000.00)
0.67%
360

PVA?

135,093.40

PVA?

136,283.49

PVAD?

145,900.87

PVAD?

137,192.05

What if I wanted to know what my montlhy payments would be a $20,000 car loan over five years at 8%?
PMT :

(20,000.00)

I:

0.67%

n:

60

PVA?

405.53

PVAD?

402.84

*** Note: Change values in 'PMT' 'I' and 'n' to solve for PVA ***

Time Value on Excel (Using the Financial Function (fx) Wizard)

Unequal Cash Flows:
a) Present Value
How much must I deposit today to receive $100 in year 1,$ 200 in year 2, $300
in year 3, and $400 in year four if I can earn 10% on my deposits?
PVIF at
Year

FV

10%

PV of CFn

100

0.90909

90.91

200

0.82645

165.29

300

0.75131

225.39

400

0.68301

273.21

754.80

Present Value of Unequal Cash Flows

b) Future Value

What will my bank account be worth if I deposit $100 in year 1, $200 in year 2,
$300 in year 3 and $400 in year 4 if I can earn 10% on my deposits?
FVIF at
Year

FV

10%

FV of CFn

100

1.10000

110.00

200

1.21000

242.00

300

1.33100

399.30

400

1.46410

585.64

1,336.94

Future Value of Unequal Cash Flows

***Note: Change values of any variable to view changes***