# Excel Assignment Help

1  The sale of a house calls for  payments of P950 at the end of each month for 25 years,if money is worth 18%, m= 12 what single payment today is equally acceptable?

2   A commercial bank pays interest at 13%, m= 2 on all the time deposits,what sequence of equal deposits at the end each six months for 5 years would accumulate for p120,000?

3    To provide for his daughter”s college educations, a man deposits P2,000 at the end of each 3 month for 6 years ,if the money draws 9%  interest converted quarterly , how much does the fund contain after 6 years?

4    A couple left an inheritance to thier 7 years old son an amount of p6,000 a year, the money was deposited in a bank which offers 8% , m=1 , if the first payment was made on the child’s 10th birthday  and the last payment on his 21st birthday ,, what amount will the child receive after the last payment?

### Question 1

In this particular question, the payment at the end of each month is \$ 950 for a period which needs to be discounted considering a discount rate of 18/12 = 1.5% per month as shown in the table below.

 Month Payment Made (\$) Present Value (\$) 1 950 935.96 2 950 922.13 3 950 908.50 4 950 895.08 5 950 881.85 6 950 868.82 7 950 855.98 8 950 843.33 9 950 830.86 10 950 818.58 11 950 806.49 12 950 794.57 13 950 782.83 14 950 771.26 15 950 759.86 16 950 748.63 17 950 737.57 18 950 726.67 19 950 715.93 20 950 705.35 21 950 694.92 22 950 684.65 23 950 674.54 24 950 664.57 25 950 654.75 26 950 645.07 27 950 635.54 28 950 626.14 29 950 616.89 30 950 607.77 31 950 598.79 32 950 589.94 33 950 581.22 34 950 572.64 35 950 564.17 36 950 555.84 37 950 547.62 38 950 539.53 39 950 531.55 40 950 523.70 41 950 515.96 42 950 508.33 43 950 500.82 44 950 493.42 45 950 486.13 46 950 478.95 47 950 471.87 48 950 464.89 49 950 458.02 50 950 451.25 51 950 444.59 52 950 438.02 53 950 431.54 54 950 425.16 55 950 418.88 56 950 412.69 57 950 406.59 58 950 400.58 59 950 394.66 60 950 388.83 61 950 383.08 62 950 377.42 63 950 371.85 64 950 366.35 65 950 360.94 66 950 355.60 67 950 350.35 68 950 345.17 69 950 340.07 70 950 335.04 71 950 330.09 72 950 325.21 73 950 320.41 74 950 315.67 75 950 311.01 76 950 306.41 77 950 301.88 78 950 297.42 79 950 293.03 80 950 288.70 81 950 284.43 82 950 280.23 83 950 276.08 84 950 272.00 85 950 267.98 86 950 264.02 87 950 260.12 88 950 256.28 89 950 252.49 90 950 248.76 91 950 245.08 92 950 241.46 93 950 237.89 94 950 234.38 95 950 230.91 96 950 227.50 97 950 224.14 98 950 220.83 99 950 217.56 100 950 214.35 101 950 211.18 102 950 208.06 103 950 204.98 104 950 201.96 105 950 198.97 106 950 196.03 107 950 193.13 108 950 190.28 109 950 187.47 110 950 184.70 111 950 181.97 112 950 179.28 113 950 176.63 114 950 174.02 115 950 171.45 116 950 168.91 117 950 166.42 118 950 163.96 119 950 161.53 120 950 159.15 121 950 156.80 122 950 154.48 123 950 152.20 124 950 149.95 125 950 147.73 126 950 145.55 127 950 143.40 128 950 141.28 129 950 139.19 130 950 137.13 131 950 135.11 132 950 133.11 133 950 131.14 134 950 129.20 135 950 127.29 136 950 125.41 137 950 123.56 138 950 121.73 139 950 119.93 140 950 118.16 141 950 116.42 142 950 114.70 143 950 113.00 144 950 111.33 145 950 109.69 146 950 108.06 147 950 106.47 148 950 104.89 149 950 103.34 150 950 101.82 151 950 100.31 152 950 98.83 153 950 97.37 154 950 95.93 155 950 94.51 156 950 93.12 157 950 91.74 158 950 90.38 159 950 89.05 160 950 87.73 161 950 86.44 162 950 85.16 163 950 83.90 164 950 82.66 165 950 81.44 166 950 80.23 167 950 79.05 168 950 77.88 169 950 76.73 170 950 75.60 171 950 74.48 172 950 73.38 173 950 72.29 174 950 71.22 175 950 70.17 176 950 69.14 177 950 68.11 178 950 67.11 179 950 66.12 180 950 65.14 181 950 64.18 182 950 63.23 183 950 62.29 184 950 61.37 185 950 60.47 186 950 59.57 187 950 58.69 188 950 57.82 189 950 56.97 190 950 56.13 191 950 55.30 192 950 54.48 193 950 53.68 194 950 52.88 195 950 52.10 196 950 51.33 197 950 50.57 198 950 49.82 199 950 49.09 200 950 48.36 201 950 47.65 202 950 46.94 203 950 46.25 204 950 45.57 205 950 44.89 206 950 44.23 207 950 43.58 208 950 42.93 209 950 42.30 210 950 41.67 211 950 41.06 212 950 40.45 213 950 39.85 214 950 39.26 215 950 38.68 216 950 38.11 217 950 37.55 218 950 36.99 219 950 36.45 220 950 35.91 221 950 35.38 222 950 34.85 223 950 34.34 224 950 33.83 225 950 33.33 226 950 32.84 227 950 32.35 228 950 31.88 229 950 31.41 230 950 30.94 231 950 30.48 232 950 30.03 233 950 29.59 234 950 29.15 235 950 28.72 236 950 28.30 237 950 27.88 238 950 27.47 239 950 27.06 240 950 26.66 241 950 26.27 242 950 25.88 243 950 25.50 244 950 25.12 245 950 24.75 246 950 24.38 247 950 24.02 248 950 23.67 249 950 23.32 250 950 22.97 251 950 22.63 252 950 22.30 253 950 21.97 254 950 21.64 255 950 21.32 256 950 21.01 257 950 20.70 258 950 20.39 259 950 20.09 260 950 19.79 261 950 19.50 262 950 19.21 263 950 18.93 264 950 18.65 265 950 18.37 266 950 18.10 267 950 17.84 268 950 17.57 269 950 17.31 270 950 17.06 271 950 16.80 272 950 16.56 273 950 16.31 274 950 16.07 275 950 15.83 276 950 15.60 277 950 15.37 278 950 15.14 279 950 14.92 280 950 14.70 281 950 14.48 282 950 14.27 283 950 14.06 284 950 13.85 285 950 13.64 286 950 13.44 287 950 13.24 288 950 13.05 289 950 12.85 290 950 12.66 291 950 12.48 292 950 12.29 293 950 12.11 294 950 11.93 295 950 11.76 296 950 11.58 297 950 11.41 298 950 11.24 299 950 11.08 300 950 10.91 Total 62,605.86

Hence the equivalent payment which can be made today is \$ 62,606 approximately.

### Question 2

Rate of interest = 13% pa or 6.5% for six months

Here we need to find the FV factor for the various payments which are made of 6 months.

 Half Year Payment Made Future Value 1 1 1.76 2 1 1.65 3 1 1.55 4 1 1.46 5 1 1.37 6 1 1.29 7 1 1.21 8 1 1.13 9 1 1.07 10 1 1.00 Total 13.4944

Let the equal payments made at the end of 6 months be \$x

Then 13.4944 x = 120000

Hence x = \$8,892.6 which can be rounded off to \$8,893

### Question 3

Money deposited after every 3 months = \$ 2,000

Time period for which this is continued = 6 years

Interest rate = 9% pa = 2.25% per quarter

Hence the value of  the fund at the end of the six years can be estimated as shown below.

 Quarter Payment Made Future Value 1 2000 3336.46 2 2000 3263.04 3 2000 3191.24 4 2000 3121.02 5 2000 3052.34 6 2000 2985.17 7 2000 2919.49 8 2000 2855.24 9 2000 2792.41 10 2000 2730.97 11 2000 2670.87 12 2000 2612.10 13 2000 2554.62 14 2000 2498.41 15 2000 2443.43 16 2000 2389.66 17 2000 2337.08 18 2000 2285.65 19 2000 2235.36 20 2000 2186.17 21 2000 2138.06 22 2000 2091.01 23 2000 2045.00 24 2000 2000.00 Total 62,734.81

Hence the estimated value of the fund at the end of six years would be \$ 62,735 approximately.

### Question 4

Money received each year = \$ 6,000

Applicable interest rate = 8% annually

The amount due at the 21st birthday is calculated as shown below.

 Birthday Payment made Value at 21st birthday 10 6000 13,989.83 11 6000 12,953.55 12 6000 11,994.03 13 6000 11,105.58 14 6000 10,282.95 15 6000 9,521.25 16 6000 8,815.97 17 6000 8,162.93 18 6000 7,558.27 19 6000 6,998.40 20 6000 6,480.00 21 6000 6,000.00 Total 113,862.76

Hence the amount received at 21st birthday by the child would be \$113,863 approximately.