If I deposit 10,000 tenge today, for 5 years at 10 % per annum, how much is

PV Todays's value -10,000

FV after 5 years KZT16,105.10
PMT regular payments 0
RATE interest rate 10%
NPER number of periods 5

If I deposit 10,000 tenge today, for 5 years at 10 % per annum, COMPOUNDED QUART

PV -10,000
FV ? KZT16,386.16
PMT 0
RATE 3%
NPER 20

If I take a loan of 5,000,000 tg for 20 years @ 12% per annum, how much EMI (eq

PV 5,000,000 ppmt
FV 0 230 (KZT49,346.48)
PMT ? (KZT55,054.31) 7 (KZT5,365.25)
RATE 1%
NPER 240
um, how much is received after 5 years?

MPOUNDED QUARTERLY, how much is received after 5 years?

ow much EMI (equal monthly installments) should I need to pay?

ipmt
(KZT5,707.83) (KZT55,054.31)
(KZT49,689.06) (KZT55,054.31)
 Numericals on Different Compounding frequencies

Problem 1
In 10 years, what is the value of 100,000 tenge invested today at an interest rate of 8% per year, c

PV -100,000
FV ? KZT221,964.02
PMT 0
RATE 0.67%
NPER 120
Problem 2
At an 11 % annual rate compounded quarterly for 2 years, compute the future valu
without compounding
PV -80,000 PV
FV ? KZT99,390.44 FV ?
PMT 0 PMT
RATE 2.75% RATE
NPER 8 NPER

Problem 3
An investor needs 2,000,000 tenge in 18 months. If she can earn 6% at the bank, compounded qu

PV ? (KZT1,829,084.39)
FV 2,000,000
PMT 0
RATE 1.50%
NPER 6

problem 4
In 10 years, what is the value of 100,000 tenge invested today at an interest rate of 8% per year?

PV -100,000
FV ? KZT215,892.50
PMT 0
RATE 8%
NPER 10
 IPAD problem
te of 8% per year, compounded monthly?
PV ?
FV
PMT
RATE
NPER

ute the future value of 80,000 tenge today.

-80,000
KZT98,568.00
0
11%
2

k, compounded quarterly, how much must she deposit today?

te of 8% per year?
KZT167,291.67
0
-7875
1%
24
Numericals on Annuity
problem 1
If a $ 45,000 car loan is financed at 12 %
PV 45,000
FV 0 overall pmt pereplata/overpayment
PMT ? ($1,185.02) ($56,881.08) $11,881.00
RATE 1%
NPER 48

problem 2
If an investor puts $5,724 per year, starting at the end of the first year, in
PV 0
FV 500000
PMT -5,724
RATE 8%
NPER ? 27

problem 3
An annuity will pay 8 annual payments of $100, with the first paymen
ordinary annuity annuity due
PV ? KZT496.76 KZT556.38
FV 0 0
PMT -100 -100
RATE 12% 12%
NPER 8 8

problem 4
If 10 equal annual deposits of $1000 are made into an i
PV 0 (KZT16,560.29)
FV ? KZT16,560.29 ? KZT39,204.23
PMT -1000 0
RATE 9% 9%
NPER 10 10

problem 5

An investor will receive an annuity of $5,000 a year for 7 years. The first payment is to
a
PV ? (KZT25,851.47) ? KZT15,000.68
FV (KZT25,851.47)
PMT KZT5,000.00 0
RATE 11.50% 11.50%
NPER 7 5
is financed at 12 % over 4 years, what is the monthly car payment?

of the first year, in an account earning 8 % and ends up accumulating $500,000, how many years

ith the first payment to be received one year from now. if the interest rate is 12% per year, what
hydrid
KZT556.38
0
-100
12%
7

0 are made into an investment account earning 9% starting today, how much will you have in 20

e first payment is to be received 5 years from now. If the annual interest rate is 11,5%, what is pr
annuity?
,000, how many years did it take the investor ?

s 12% per year, what is PV of this annuity?

h will you have in 20 years?

e is 11,5%, what is present value of the

 Numericals on Perpetuity
problem 1
An investment offers $100 per year forever. If the required rate of return on this investme

PV=PMT/Rate PV ? 1000
pmt 100
rate 10%

problem 2

Compute the PV of a perpetuity with $100 payments beginning four years from now. Assume th
PV
PV ? 1000 FV
pmt 100 PMT
rate 10% RATE
NPER
etuity
f return on this investment is 10%, how much is this investment worth?

ars from now. Assume the appropriate annual interest rate is 10%
? ($683.01)
1000
0
10%
4
 Numericals on Uneven Cash Flows

Problem 1

If the expected cash flows at the end of year are 3000 and are expected to increase by 100
find the PV of this cash flow stream using a d
1 2 3 4
PV (KZT2,678.57) (KZT3,188.78) (KZT3,558.90) (KZT3,813.11)
FV 3000 4000 5000 6000
PMT 0 0 0 0
RATE 12% 12% 12% 12%
NPER 1 2 3 4
problem 2

How much would the following income stream be worth assuming a 12% discount rate
years from today and $300 receiv

HOMEWORK
1 2 3
PV ? (KZT100.00) (KZT178.57) (KZT318.88)
FV 100 200 400
PMT 0 0 0
RATE 12% 12% 12%
NPER 0 1 2
als on Uneven Cash Flows

expected to increase by 1000 each year up to year 4 and expected cash flow in year 5 is -6000,
s cash flow stream using a discount rate of 12%?
5 TOTAL PV NPV
KZT3,404.56 (KZT9,834.80) KZT9,834.80
-6000
0
12%
5

uming a 12% discount rate? $100 received today, $200 received 1 year from today, $400 is rece
om today and $300 received 3 years from today.

4 total pv NPV
(KZT213.53) (KZT810.98) KZT810.98
300
0
12%
3
w in year 5 is -6000,

r from today, $400 is received 2

 Complex time value of money problems

problem 1

A person is getting a $25,000 loan, with an 8% annual interest rate to be paid in 48 equal monthly
first month, find the principal and interest of the en

PV -25000 TABLE
FV 0 months principal interest pmt
PMT ? KZT610.32 1 25000 166.6666667
RATE 0.67% 2 KZT24,556.34 KZT163.71
NPER 48 3 KZT24,109.73 160.73153
4 23,660.1379784880 157.7342532
5 23,207.5491731404 154.7169945
6 22,751.9431090904 151.6796207
7 22,293.2996712801 148.6219978
8 21,831.5986105511 145.5439907
9 21,366.8195427506 142.4454636
10 20,898.9419478313 139.3262797
11 20,427.9451689460 136.1863011
12 19,953.8084115347 133.0253894
13 19,476.5107424074 129.8434049
14 18,996.0310888192 126.6402073
15 18,512.3482375405 123.4156549
16 18,025.4408339198 120.1696056
17 17,535.2873809417 116.9019159
18 17,041.8662382771 113.6124416
19 16,545.1556213281 110.3010375
20 16,045.1336002660 106.9675573
21 15,541.7780990636 103.611854
22 15,035.0668945198 100.2337793
23 14,524.9776152790 96.8331841
24 14,011.4877408433 93.40991827
25 13,494.5746005780 89.96383067
26 12,974.2153727110 86.49476915
27 12,450.387083325 83.00258056
28 11,923.0666053428 79.4871107
29 11,392.2306575075 75.94820438
30 10,857.8558033533 72.38570536
31 10,319.9184501714 68.79945633
32 9,778.3948479684 65.18929899
33 9,233.2610884173 61.55507392
34 8,684.4931038025 57.89662069
35 8,132.0666659569 54.21377777
36 7,575.9573851924 50.50638257
37 7,016.1407092228 46.77427139
38 6,452.5919220801 43.01727948
39 5,885.2861430230 39.23524095
40 5,314.1983254390 35.42798884
41 4,739.3032557376 31.59535504
42 4,160.5755522383 27.73717035
43 3,577.9896640490 23.85326443
44 2,991.5198699385 19.9434658
45 2,401.1402772005 16.00760185
46 1,806.8248205109 12.0454988
47 1,208.5472607768 8.056981739
48 606.2811839777 4.04187456
d in 48 equal monthly installments. If the first payment is due at the end of the
and interest of the entire period.

TABLE
principal pmt outstanding balance
KZT443.66 KZT24,556.34
KZT446.61 KZT24,109.73
449.591528491035 23,660.1379784880
452.588805347642 23,207.5491731404
455.606064049959 22,751.9431090904
458.643437810292 22,293.2996712801
461.701060729028 21,831.5986105511
464.779067800555 21,366.8195427506
467.877594919225 20,898.9419478313
470.996778885353 20,427.945168946
474.136757411256 19,953.8084115347
477.297669127331 19,476.5107424074
480.479653588179 18,996.0310888192
483.682851278767 18,512.3482375405
486.907403620626 18,025.4408339198
490.153452978097 17,535.2873809417
493.421142664617 17,041.8662382771
496.710616949048 16,545.1556213281
500.022021062042 16,045.133600266
503.355501202455 15,541.7780990636
506.711204543805 15,035.0668945198
510.089279240764 14,524.977615279
513.489874435702 14,011.4877408433
516.913140265273 13,494.574600578
520.359227867042 12,974.215372711
523.828289386155 12,450.3870833248
527.320477982063 11,923.0666053428
530.835947835277 11,392.2306575075
KZT534.37 10,857.8558033533
537.937353181873 10,319.9184501714
541.523602203086 9,778.39484796835
545.133759551106 9,233.26108841724
548.767984614780 8,684.49310380246
552.426437845546 8,132.06666595692
556.109280764516 7,575.9573851924
559.816675969613 7,016.14070922279
563.548787142743 6,452.59192208005
567.305779057028 5,885.28614302302
571.087817584075 5,314.19832543894
574.895069701302 4,739.30325573764
578.727703499311 4,160.57555223833
582.585888189307 3,577.98966404902
586.469794110569 2,991.51986993845
590.379592737972 2,401.14027720048
594.315456689559 1,806.82482051092
598.277559734156 1,208.54726077677
602.266076799050 606.281183977717
606.281183977711 0.000000000005911716