From the course: Investment Evaluation

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

Solution 1: Determine present, future, and terminal values

Solution 1: Determine present, future, and terminal values - Microsoft Excel Tutorial

From the course: Investment Evaluation

Start my 1-month free trial

Solution 1: Determine present, future, and terminal values

“

- [Instructor] Alright, welcome to your first solution video. If you want the solution data, you can find it in 01_08_Solution1 of the exercise files. Let's start by taking a look at the first dataset in which we're trying to determine future value. And what I'm gonna do, is I'm gonna actually gonna use the formula provided right here and solve it using that instead of the Excel function. So if I'm looking for future value, I've got an initial investment of $20,000, that's equal to my I, my discount rate, or my interest rate is 12%, so that's my lowercase i, and my number of years is six, which is gonna be that n right there. So let me type all this in into the future value box in cell B7. So that's equal to my initial investment, which is B3, and that's gonna be multiplied by one plus my interest rate, and that interest rate should be in decimal form, so 1.12 is gonna be the sum there, and I'm gonna take that to the power of six, because that's how many number of years we have in the…

Contents