(17B & 12C) Financial Math on Spreadsheet & Calculator
06-25-2020, 01:58 AM (This post was last modified: 06-25-2020 02:03 AM by SlideRule.)
Post: #1
 SlideRule Senior Member Posts: 1,462 Joined: Dec 2013
(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 graduate-level 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 step-by-step calculating steps a student needs to learn on both spreadsheet and calculator. It has been used with success as a self-contained, pre-course tutorial that takes the typical student 2-3 hours to complete. Additional practice problems with worked out answers are also included.

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
PRACTICE PROBLEMS .............................................................................19

Key sequences for the HP-12C, HP-17B and Excel are included in each section.

BEST!
SlideRule
06-25-2020, 02:46 AM
Post: #2
 rprosperi Super Moderator Posts: 6,299 Joined: Dec 2013
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
06-25-2020, 11:47 AM
Post: #3
 SlideRule Senior Member Posts: 1,462 Joined: Dec 2013
RE: (17B & 12C) Financial Math on Spreadsheet & Calculator
(06-25-2020 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 'open-source' url for view/download until this week. Many more to come as additional 'free & open' url's that match my repository-docs are gleaned from the web.

BEST!
SlideRule
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