Table of Contents

Objectives. 5

Time Value of Money Concepts. 5

Understanding Excel Time Value of Money Functions. 7

Review Question: 9

Present Value of a Single Sum.. 9

Review Question: 16

Future Value of a Single Sum.. 16

New Single Sum Functions in Excel 2013. 22

Review Question: 24

Present Value of Annuities. 24

Review Question: 29

Future Value of Annuities. 29

Computing the Periodic Payment 33

Review Questions: 40

Computing the Rate. 41

Review Questions: 44

Computing Number of Periods. 45

Review Question: 48

Cumipmt and Cumprinc Functions. 49

Annuities Due. 52

Evaluating Uneven Cash Flows – Capital Budgeting. 54

Review Question: 59

Using Data Tables. 60

Review Questions: 69

Glossary. 70

Index. 71

Answers to Review Questions. 72

CPE Exam.. 78