Excel Companion Chapter 3 Section 5
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PERIODIC PAYMENTS --- Future Value TVM2.xls

Click on the tab for the sheet FVORDANN in TVM2.xls. Regular payments of $2000 are made into an account at the end of each period for 12 periods. Interest is compounded at a rate of 5% per period. At the end of period 12 the accumulated value is $31,834.25.

TVM2.xls-FVORDANN

QUESTIONS:

1. What has the first $2,000 payment grown to at the end of period 5?
2. What has the first $2,000 payment grown to at the end of period 12?
3. What has the fifth $2,000 payment grown to at the end of period 12?
4. If all payments ceased after payment 5 then what would be in the account at the end of the fifth period?

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Copyright © Joseph F. Aieta, Babson College 1997