Chapter 5 Excel Assignment
Inputs: PV = 1000
I/YR = 10%
N = 5
FV ($1,610.51)
b. Now create a table that shows the FV at 0%, 5%, and 20% for 0, 1, 2, 3, 4, and 5 years.
Interest Rate (D9)
($1,610.51) 0% 5% 20%
0
1
2
3
4
5
Inputs: FV = 1000
I/YR = 10%
N = 5
PV
Inputs: PV = -1000
FV = 2000
I/YR = ?
N = 5
Rate
a. Find the FV of $1,000 invested to earn 10% annually 5 years from now. Answer this
question by using the Excel function
c. Find the PV of $1,000 due in 5 years if the discount rate is 10% per year. Again, work the
problem by using the Excel function
d. A security has a cost of $1,000 and will return $2,000 after 5 years. What rate of return
does the security provide?
