For this problem, there are 10 future value and present value exercises to be solved. Review the printout of the worksheet file COMPOUND that follows these requirements. This file also contains a second sheet called the Answer Sheet. Note that the worksheet is divided into four sections. You have to decide which section is appropriate for each exercise. Open the file COMPOUND from the website for this book at cengagebrain.com. To enter the four formulas in the appropriate cells, use the FV and PV functions for the annuities (see Appendix A in Excel Quick for a discussion of them). Unfortunately Excel does not provide functions for the future value of an amount nor the present value of an amount. Enter the following formulas for FORMULA1 and FORMULA2: FORMULA1: =B6*((1+B8)^B7) FORMULA2: =E6/((1+E8)^AE7) For the annuity calculations (FV and PV), it is important that you enter a value (or cell reference) for type to indicate the timing of the first payment. If the first payment is made today for an annuity, type must be 0. This is known as an annuity due. If the first payment is made at the end of the first period, type is 1. This is known as an ordinary annuity. Enter your name in cell A1. Save the completed worksheet as COMPOUND2. When you have completed the exercises below, print your formulas. Do not print the worksheet. Check figures: The answer sheet at the end of this section provides answers to the first exercise

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 2R: Open the file MASTER from the website for this book at cengagebrain.com. Enter all the formulas...

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For this problem, there are 10 future value and present value exercises to be solved. Review the printout of the worksheet file COMPOUND that follows these requirements. This file also contains a second sheet called the Answer Sheet. Note that the worksheet is divided into four sections. You have to decide which section is appropriate for each exercise. Open the file COMPOUND from the website for this book at cengagebrain.com. To enter the four formulas in the appropriate cells, use the FV and PV functions for the annuities (see Appendix A in Excel Quick for a discussion of them). Unfortunately Excel does not provide functions for the future value of an amount nor the present value of an amount. Enter the following formulas for FORMULA1 and FORMULA2: FORMULA1: =B6*((1+B8)^B7) FORMULA2: =E6/((1+E8)^AE7) For the annuity calculations (FV and PV), it is important that you enter a value (or cell reference) for type to indicate the timing of the first payment. If the first payment is made today for an annuity, type must be 0. This is known as an annuity due. If the first payment is made at the end of the first period, type is 1. This is known as an ordinary annuity. Enter your name in cell A1. Save the completed worksheet as COMPOUND2. When you have completed the exercises below, print your formulas. Do not print the worksheet. Check figures: The answer sheet at the end of this section provides answers to the first exercise

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