Excel Ch. 7 Homework - Practice Exercise

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Business Finance

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Excel Ch. 7 Homework - Practice Exercise

- Practice Exercise #3: Financial Investments

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Instructions: Investment Variable Payments Per Year Present Value APR Rate Term No. of Payments Periodic Payment Future Value Enter input values in cells with light blue. PMT/FV $ PV NPER/FV 12 100,000.00 10.00% 12 10.00% 20 20 $ $ 965.02 $ $ 1,465,614.73 12 100,000.00 $ 10.00% RATE/FV 12 100,000.00 20 965.02 $ 965.02 3 Financial Investments Some of your friends are in a business finance class. They are studying for their first test and will have to use financial calculators. As they practice for the test, they want to make sure they are cal- culating investment variables correctly. You volunteered to set up an investment model in which they enter the input variables to check their answers against formula calculations you will enter Refer to Figure 33 as you complete this exercise. E11 =-FV(E7, E9, E10, E5) D E F B с Enter input values in cells with light blue. A 1 Instructions: 2 3 Investment Variable 4 Payments Per Year 5 Present Value 6 APR 7 Rate 8 Term 9 No. of Payments 10 Periodic Payment 11 Future Value 12 PMT/FV PV NPER/FV RATE/FV 12 12 12 12 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 10.00% 10.00% 10.00% 10.00% 0.83% 0.83% 0.83% 0.83% 20 20 20 20 240 240 240 240 $ 965.02 $ 965.02 $ 965.02 $ 965.02 $1,465,614.73 $ 1,465,614.73 $1,465,614.73 $1,465,614.73 Excel 2016, Windows 10, Microsoft Corporation FIGURE 33 Financial Functions Practice Exercises 448 . a. Open e07p3Finance and save it as e07p3Finance_LastFirst. b. Calculate the periodic rate, number of periods, periodic payment, and future value in column B by completing the following steps: Click cell B7 and type=B6/B4 to calculate the periodic rate. • Click cell B9 and type=B8*B4 to calculate the number of payment periods. • Click cell B10, click the Formulas tab, click Financial in the Function Library group, scroll down, and then select PMT. Type B7 in the Rate box, type B9 in the Nper box, and then type -B5 in the PV box. Click OK to calculate the monthly payment. • Click cell B11, click Financial in the Function Library group, and then select FV. Type B7 in the Rate box, type B9 in the Nper box, type B10 in the Pmt box, and then type B5 in the Pv box. Click OK and edit the formula by typing - on the right side of =. c. Calculate the number of payments, periodic rate, and present value in column C by completing the following steps: Click cell C9 and type =C8*C4 to calculate the number of payment periods. Click cell C7 and type =C6/C4 to calculate the periodic rate. Click cell C5, click Financial in the Function Library group, and then select PV. Type C7 in the Rate box, type C9 in the Nper box, and then type C10 in the Pmt box. Click OK and edit the formula by typing - on the right side of =. d. Calculate the rate, number of payment periods, term, and future value in column D by com- pleting the following steps: Click cell D7 and type =D6/D4 to calculate the periodic rate. Click cell D9, click Financial in the Function Library group, and then select NPER. Type D7 in the Rate box, type D10 in the Pmt box, type - D5 in the Py box, and then click OK. • Click cell D8 and type =D9/D4 to calculate the term (i.e., number of years). • Click cell D11 and type =-FV(D7,09,110,D5) to calculate the future value. e. Calculate the number of payment periods, rate, APR, and future value in column E by complet- ing the following steps: Click cell E9 and type =E8°E4 to calculate the number of payment periods. Click cell E7. click Financial in the Function Library group, and then select RATE. Type E9 in the Nper box, type -E10 in the Pmt box, type E5 in the Pv box, and then click OK. Click cell E6 and type =E7E4 to calculate the APR. Click cell E11 and type =-FV(E7,E9.E10,E5) to calculate the future value. f. Create a footer with your name on the left side, the sheet name code in the center, and the file name code on the right side. g. Save and close the file. Based on your instructor's directions, submit e07p3Finance_LastFirst. .
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Really useful study material!

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