Question for you Microsoft Excel guru's...
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!! |
Don't you just hate excel?
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I just don't freakin' get it. I'm not one to ask for HW help, but I am clueless on this one.
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bump
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wish i could help
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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. |
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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. |
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 |
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. |
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Hopefully it's right. I think I understand what he's looking for, though.
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