(17B & 12C) Financial Math on Spreadsheet & Calculator

06252020, 01:58 AM
(This post was last modified: 06252020 02:03 AM by SlideRule.)
Post: #1




(17B & 12C) Financial Math on Spreadsheet & Calculator
An exctract from Financial Math on Spreadsheet and Calculator, © 2002 Kent L. Womack & Andrew Brownell, Tuck School of Business, Dartmouth College, Version 4.0, 22 pages
Abstract First graduatelevel finance courses in investments or corporate finance often presuppose knowledge of the first essential finance paradigm: time value of money (TVM). Yet, many incoming MBAs do not know the concept and need to get up the learning curve quickly on how to calculate present and future values of single cash flows and annuities. This tutorial attempts to link the mathematical concepts (and their equations) to stepbystep calculating steps a student needs to learn on both spreadsheet and calculator. It has been used with success as a selfcontained, precourse tutorial that takes the typical student 23 hours to complete. Additional practice problems with worked out answers are also included. Table of Contents INTRODUCTION .....................................................................................1 PERFORMING TVM CALCULATIONS—THE GENERAL FRAMEWORK ........................2 CALCULATING FUTURE VALUE ....................................................................3 COMPOUNDING MULTIPLE TIMES PER YEAR .................................................4 CALCULATING PRESENT VALUE ..................................................................5 CALCULATING THE INTEREST RATE (OR, THE DISCOUNT RATE) .......................7 CALCULATING THE FUTURE VALUE OF AN ANNUITY .......................................8 CALCULATING THE PRESENT VALUE OF AN ANNUITY ......................................9 CALCULATING THE PRESENT VALUE OF A PERPETUITY ..................................10 CALCULATING THE PRESENT VALUE OF A GROWING PERPETUITY ....................11 CALCULATING THE PRESENT VALUE OF A GROWING ANNUITY ........................12 ADVANCED APPLICATION: PRICING BONDS .................................................14 PRACTICE PROBLEMS .............................................................................19 PRACTICE PROBLEM ANSWERS ................................................................20 Key sequences for the HP12C, HP17B and Excel are included in each section. BEST! SlideRule 

06252020, 02:46 AM
Post: #2




RE: (17B & 12C) Financial Math on Spreadsheet & Calculator
Nice find SlideRule!
Organized, clear, reference formulas and examples, including some atypical finance applications. Thanks! Bob Prosperi 

06252020, 11:47 AM
Post: #3




RE: (17B & 12C) Financial Math on Spreadsheet & Calculator
(06252020 02:46 AM)rprosperi Wrote: Nice find SlideRule! … Thanks! Bitte. Although the article has been in my repository for a while, I struggled to find an 'opensource' url for view/download until this week. Many more to come as additional 'free & open' url's that match my repositorydocs are gleaned from the web. BEST! SlideRule 

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