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TRR
03-15-2005, 10:09 PM
I got a problem to do for a class, and I am struggling with it. Anyone care to help? Here is the problem....

Your looking to retire into a class one mobile home. For 10 years, you will make deposits. The account pays 7.25% annual interest. Create a worksheet that uses financial function to show future value on the investment and determine the percent of the mobile home cost saved.

Mobile Home Cost = $120,000
Rate (per month) = 7.25%/12
NPER = 10*12
PMT = $300
Percent of tuition saved = FV/Cost

Create a data table that shows the FV and percentage of Cost saved for monthly payments from $250 to $600 in 50 dollar increments.

Any help will get multiple rep!!

ChiefsCountry
03-15-2005, 10:12 PM
Don't you just hate excel?

TRR
03-15-2005, 10:14 PM
I just don't freakin' get it. I'm not one to ask for HW help, but I am clueless on this one.

TRR
03-15-2005, 10:26 PM
bump

ChiefsCountry
03-15-2005, 10:27 PM
wish i could help

Rain Man
03-15-2005, 10:28 PM
What's the tuition statement about?

I think that all this problem is about is identifying how much you would need to save to earn the cost of the mobile home in ten years, along with the future value of each month's savings. I just don't know what they're talking about with tuition.

TRR
03-15-2005, 10:31 PM
What's the tuition statement about?

I think that all this problem is about is identifying how much you would need to save to earn the cost of the mobile home in ten years, along with the future value of each month's savings. I just don't know what they're talking about with tuition.


Are you talking about the percentage of tuition saved? I believe it's what you said. Basically, what you will save on the investment if you pay into it monthly over a 10 year period.

Basically, I think he is saying at the end, you take your calculated FV and divide it by your actual cost of the motor home (120,000) to get you ending figure.

TRR
03-15-2005, 10:39 PM
Here was his example problem...

Price $154,000.00 Rate 8.25%
Down_Pmt $32,000.00 Years 15
Loan_Amt $122,000.00 Monthly_Pmt $1,183.57
Total_Int $91,042.82
Total_Cost $245,042.82



Rate Monthly Pmt Total Interest Total Cost
$1,183.57 $91,042.82 $245,042.82
7.50% $1,130.96 $81,571.91 $235,571.91
7.75% $1,148.36 $84,704.16 $238,704.16
8.00% $1,165.90 $87,861.20 $241,861.20
8.25% $1,183.57 $91,042.82 $245,042.82
8.50% $1,201.38 $94,248.81 $248,248.81
8.75% $1,219.33 $97,478.92 $251,478.92
9.00% $1,237.41 $100,732.94 $254,732.94
9.25% $1,255.61 $104,010.63 $258,010.63
9.50% $1,273.95 $107,311.74 $261,311.74
9.75% $1,292.42 $110,636.04 $264,636.04
10.00% $1,311.02 $113,983.28 $267,983.28

Rain Man
03-15-2005, 10:52 PM
Here's how I'd do it. I didn't bother to separate out the principal and interest, though that would be easy to do.

I used two methods - one using Excel's FV function, and the other calculated manually. The manual method is using a continuous growth assumption, so it's off a tad bit, I'll bet.

TRR
03-15-2005, 10:57 PM
Here's how I'd do it. I didn't bother to separate out the principal and interest, though that would be easy to do.

I used two methods - one using Excel's FV function, and the other calculated manually. The manual method is using a continuous growth assumption, so it's off a tad bit, I'll bet.

Wow. Thank you. I'm giving you rep every day as long as I am on this board. Thanks Rain Man for the help. I appreciate it.

Rain Man
03-15-2005, 10:59 PM
Hopefully it's right. I think I understand what he's looking for, though.

TRR
03-15-2005, 11:03 PM
Wow. Thank you. I'm giving you rep every day as long as I am on this board. Thanks Rain Man for the help. I appreciate it.

Thank you. I just needed a little bit of functionality help. I appreciate it! You restored my faith in humanity.