Future Value

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Devotedx77 - 30 Apr 2007 02:44 GMT

I have to setup a worksheet that claculates the future value and percentage
of tuition saved for monthly payments from $275-875 in increments of $50. For
the following data:

Annual Tuition $45,000, Rate = 4.25%/12, total payments of 15 years for 12
months/yr. I don't know how to setup the worksheet to calculate the
percentage of tuition saved. I setup the formula to calculate the FV as:
(reference the cell with the value - in my case is B15:B27) * ((1 +
Annual_Return / 12) * Years * 12)/Annual_Return/12. I don't know if my future
value calculation is correct but I have $97,402.57, $115,112.13, $132,821.69,
$150,531.25, $168,240.81, $185,950.37, $203,659.93, $221,369.49, $239,079.04,
$256,788.60, $274,498.16, $292,207.72, $309,917.28 as the future values based
on the various increments of $275-875 but that is as far as I've been able to
get. Can someone help?

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Leung - 30 Apr 2007 03:42 GMT

Hi

What it mean for tuition saved? Can you please elborate more?

can you use the embeded FV function?

Leung

> I have to setup a worksheet that claculates the future value and percentage
> of tuition saved for monthly payments from $275-875 in increments of $50. For
[quoted text clipped - 10 lines]
> on the various increments of $275-875 but that is as far as I've been able to
> get. Can someone help?

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Devotedx77 - 30 Apr 2007 04:14 GMT

What I mean by percentage of tuition saved is the percent of the $45,000*4
that is saved every month.

> Hi
>
[quoted text clipped - 18 lines]
> > on the various increments of $275-875 but that is as far as I've been able to
> > get. Can someone help?

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Leung - 30 Apr 2007 07:26 GMT

Hi

you said $45,000 is the Annual Tuition but why saving is calculated by
$45,000*4 ?

If you are using FV function below are the result.

What do you mean "saved" which 2 you want to compare?

Please elaborate more..

Annual Tuition    45000
Annual Rate    4.25%
period rate    0.35%
No. of period    180

Monthly Payment    FV
275    ($69,076.08)
325    ($81,635.37)
375    ($94,194.66)
425    ($106,753.95)
475    ($119,313.23)
525    ($131,872.52)
575    ($144,431.81)
625    ($156,991.10)
675    ($169,550.39)
725    ($182,109.67)
775    ($194,668.96)
825    ($207,228.25)
875    ($219,787.54)

> What I mean by percentage of tuition saved is the percent of the $45,000*4
> that is saved every month.
[quoted text clipped - 21 lines]
> > > on the various increments of $275-875 but that is as far as I've been able to
> > > get. Can someone help?

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Roger Govier - 30 Apr 2007 08:40 GMT

Hi

I'm not certain what you are trying to calculate here.
Are you wanting to calculate what the payment needs to be to clear the
45000 in 180 months?
I put 45000 in cell B1 and 4.25% in C1
=PMT($C$1/12,180,$B$1,,0)
returns 338.53 as the monthly sum required.

If you are trying to calculate how many months it would take to clear
the debt at different monthly payments, then with -275,
-325, -375 in cells B3 :B15, enter the following in cell C3 and copy
down
=NPER($C$1/12,B3,$B$1)
This will give values of 2245, 191, 157 ...... 57
If you insert a row at row 5, and enter -338.53 in B5, the value in C5
will be 180 showing that the payment as calculated by the first formula
clears the loan in 180 months.

Signature

Regards

Roger Govier

>I have to setup a worksheet that claculates the future value and
>percentage
[quoted text clipped - 19 lines]
> able to
> get. Can someone help?

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