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    Mod13 a av3 Mod13 a av3 Document Transcript

    • Module 13AA TIME VALUE OF MONEY CALCULATIONS OBJECTIVE: Time value of money calculations usually involve four variables, a present value, future value, interest rate and a number of periods. This program will calculate any of these variables given the other three variables. INPUTS (will appear in blue): Where prompted, enter: a) The amount at the end or future value (FV) b) The amount at the beginning or present value (PV) c) The interest rate in decimals (i) d) The number of periods from beginning to end (n) Sample data have been entered as an example. a. Calculate future value, given the other three variables: PV i n -------------- -------------- -------------- Enter variables: 1000 10.0% 10 -------------- -------------- -------------- Answer: 2593.74 b. Calculate present value, given the other three variables: FV i n -------------- -------------- -------------- Enter variables: 2594 10.0% 10 -------------- -------------- -------------- Answer: 1000.10 c. Calculate interest rate, given the other three variables: PV FV n -------------- -------------- -------------- Enter variables: 1000 2594 10 -------------- -------------- -------------- Answer: 10.0%
    • d. Calculate number of periods, given the other three variables: PV FV i -------------- -------------- -------------- Enter variables: 1000 2594 10.0% -------------- -------------- -------------- Answer: 10.00