Question

Using PV function in Excel. Cant get to generate the right answer for PV, Annuity and NPV formulas. It should be 7462.20, just like the sum of All PV.

2) Find the present value of a 10 year annuity due of $1,200 with 12% APR and quarterly compounding Requirement: Calculation and output sections must update automatically with changes in data input. Update shaded cells with formulas and functions. Data Input Cashflow Rate Discount Rate Periods S1,200 12% 12.55% 0.12550881 10 Period> Cashflow Present Value 0 5 6 10 $1,200.00 $1,066.18 $947.29 $841.66 $747.80 $664.41$590.32 $524.49 $46 $414.04 $0.00 Output methods Sum of all PV Using PV Function Using NPV Function Using Annuity Formula $7,462.20

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Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text ta copy. B า 프 . Ej- a-Δ. : rーー 逻锂函Merge & Center. $ % , to: conditional Format . Cell Insert Delete Formsat Sort &Find & 2 ClearFe Select Edting Format Painter Formatting, as Table w styles. ▼ ㆆ ▼ Clipboard Alignment Number Cells M18 2 CASHFLOW 3 RATE 4 DISCOUNT RATE 5 PERIODS 1200 12% 12.55% 10 7 PERIOD 8 CASHFLOW 9 PRESENT VALUE 10 11 OUTPUT METHODS 12 SUM OF ALL PV 13 USING PV 14 USING NPV 15 USING ANNUITY 16 17 18 19 /4 NOTE BIDDING, UNDERWRITING (EUAC AV PM LIFE 0 1200 4 6 10 1200 1200 1066.18 947.29841.66 747.80 664.41 590.32 524.49 466.00 414.04 1200 1200 1200 1200 1200 1200 1200 1200 7462.20 7462.20 7462.20 7462.20 PV(M4,M5,-M2,,1) A/r*(1-(1/(1+r)An))*(1+ ANNUITY DUE FORMULA (1200/0.12550881)(1-(1/(1+0.12550881)A10)) (1+0.12550881) LP, lp MRP INFLATION YIELD WARRANTrefund bond CLEAN INVOICE PRICE . Sheet1 . Sheet3 Sheet4 05:58 29-01-2019

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