Appendix 1
EXERCISE ANSWERS
Chapter 2 – Interest rates
The answer (see Figure A1.1) uses the FV function to calculate the balance outstanding since a payment of 2,000 fails to write off fully the capital of 100,000 at the nominal rate of 10 per cent. At the future value of 5,000 the payment increases marginally to 2,060 per month. A specimen spreadsheet using the Comparison sheet as a template is given in Figure A1.1. The inputs change and the formula in C15 is changed to calculate the required future value.
Figure A1.1 Chapter 2
Chapter 3 – Cash flows
The spreadsheet in Figure A1.2 sets out all the inputs for this semi-annual loan agreement. ...
Get Mastering Financial Mathematics in Microsoft Excel, 3rd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
