
Finance Help....
Looking for a little help...I got the answeres in Excel but I need to setup it the way the teacher wants to see it. The question is below.
Teacher wants it setup the way below and wants us to use a Finace calculator...
N I/Y PV PMT FV
? ? ? ? ?
I did it this way...
How much will $1,500 grow to in 9 years earning an annual rate 9% yet using monthly compounding? What about 22 years?
A= P(1+ r/q)qt ...where "A" is the future amount, "P" is the beginning amount (or "principal"), "r" is the interest rate (expressed as a decimal), "q" is the number of compoundings a year, and "t" is the total number of yearsAns.A= 1500(1+.09/12)12*9=1500*2.241124$3,361.69in 9 yearsA= 1500(1+.09/12)12*22=1500*7.18943$10,784.15in 22 years

Re: Finance Help....
Originally Posted by 2forISU
Looking for a little help...I got the answeres in Excel but I need to setup it the way the teacher wants to see it. The question is below.
Teacher wants it setup the way below and wants us to use a Finace calculator...
N I/Y PV PMT FV
? ? ? ? ?
I did it this way...
How much will $1,500 grow to in 9 years earning an annual rate 9% yet using monthly compounding? What about 22 years?
A= P(1+ r/q)qt ...where "A" is the future amount, "P" is the beginning amount (or "principal"), "r" is the interest rate (expressed as a decimal), "q" is the number of compoundings a year, and "t" is the total number of yearsAns.A= 1500(1+.09/12)12*9=1500*2.241124$3,361.69in 9 yearsA= 1500(1+.09/12)12*22=1500*7.18943$10,784.15in 22 years
Let me Google that for you:
How To Calculate Compound Interest in Excel  Excel Formula
This is what you need to do.

Re: Finance Help....
Originally Posted by cjb1978
I know how to do it in excel but not on finance calculator. How do you punch it on a calculator?

Re: Finance Help....
Originally Posted by 2forISU
I know how to do it in excel but not on finance calculator. How do you punch it on a calculator?
How To Calculate Compound Interest
How to Calculate Compound Interest  Investors Calculate Compound Interest

Re: Finance Help....
Originally Posted by 2forISU
Looking for a little help...I got the answeres in Excel but I need to setup it the way the teacher wants to see it. The question is below.
Teacher wants it setup the way below and wants us to use a Finace calculator...
N I/Y PV PMT FV
? ? ? ? ?
I did it this way...
How much will $1,500 grow to in 9 years earning an annual rate 9% yet using monthly compounding? What about 22 years?
A= P(1+ r/q)qt ...where "A" is the future amount, "P" is the beginning amount (or "principal"), "r" is the interest rate (expressed as a decimal), "q" is the number of compoundings a year, and "t" is the total number of yearsAns.A= 1500(1+.09/12)12*9=1500*2.241124$3,361.69in 9 yearsA= 1500(1+.09/12)12*22=1500*7.18943$10,784.15in 22 years
9 Years:
N = 108 (9yrs*12mos)
I/Y = .0075 (.09APR/12mos)
PV = $1,500
Find for FV
22 years
N = 264 (22yrs*12mos)
I/Y = .0075 (.09APR/12mos)
PV = $1,500
Find for FV

Re: Finance Help....
Originally Posted by 2forISU
...
Teacher wants it setup the way below and wants us to use a Finace calculator...
N I/Y PV PMT FV
? ? ? ? ?
I did it this way...
How much will $1,500 grow to in 9 years earning an annual rate 9% yet using monthly compounding? What about 22 years?
A= P(1+ r/q)qt ...where "A" is the future amount, "P" is the beginning amount (or "principal"), "r" is the interest rate (expressed as a decimal), "q" is the number of compoundings a year, and "t" is the total number of yearsAns.A= 1500(1+.09/12)12*9=1500*2.241124$3,361.69in 9 yearsA= 1500(1+.09/12)12*22=1500*7.18943$10,784.15in 22 years
You'll need to set your calculator's "C/Y" to 12 (compound monthly).
PV = 1,500
N = 9 (then 22 for the second part)
I/Y = 9
Compute the FV
(fyi ... one of the values might need to be set to a negative, or the FV may be calculated as a negative ... whichever you choose)
I don't have my calcluator with me ...
edited.
Last edited by Max57; 01262011 at 11:15 AM.
Reason: Or as CRAZYGREG did it.

Re: Finance Help....
This looks pretty similar to my HW. What class is this for?

Re: Finance Help....
Originally Posted by CRAZYGREG
9 Years:
N = 108 (9yrs*12mos)
I/Y = .0075 (.09APR/12mos)
PV = $1,500
Find for FV
22 years
N = 264 (22yrs*12mos)
I/Y = .0075 (.09APR/12mos)
PV = $1,500
Find for FV
Thank you!

Re: Finance Help....
Originally Posted by nickwc
This looks pretty similar to my HW. What class is this for?
I live in St. Louis

Re: Finance Help....
My solution is for C/Y set to 1. You can put the PV in as a () if you wish since it is coming out of your p[ocket up front.
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