Create your own problem for each function listed below.

• FUTURE VALUE FUNCTION:

FV = PV * (1+i)^n

^ means to the power of; FV = future value; PV = present value; i = interest; n = number of periods.

You can manipulate the FV formula to compute the PV:

PV = FV/(1+i)^n

Of course you could also solve for interest (i) or n (number of periods).

• ANNUITY FUNCTION:

PV of Annuity = pmt ((1/i)-(1/(i(1+i)^n))

pmt means periodic payment

You can solve problems using your calculator though in this course the expectation is that you will use Excel.

• PRESENT VALUE FUNCTION:

=pv(rate,nper,pmt,[fv],[type])