MTH 154
Practice with Google Sheets/MS Excel
Finance
Complete the following tasks below. Some recommendations for clarity/organization:
1. Label your spreadsheet clearly. It’s very difficult to read and interpret long columns of
numbers if we don’t know what they mean. If you are looking at a column of numbers showing
the cu
ent balance or interest, label it as such.
2. Use tabs. A great way to organize these tasks is to do each problem on a new tab. You can
name the tabs Problem 1, Problem 2, etc. Then when you are ready to submit your work,
everything is on one sheet with multiple tabs.
3. Submit your work through Canvas when you are all done. If you are using Excel, save
your work and submit an .xlsx file. If you are using Sheets, use the “Share” option and provide
the link so I can view your document.
Here are the tasks:
Problem 1. Invest $1500 into an account earning 4% simple interest. What amount is in the
account after 5 years? Make a separate column showing the interest.
Problem 2. Repeat Problem 1 with compound interest (compounded annually).
Problem 3. Gracie deposits $425 into an account earning 3.2% interest compounded quarterly.
Show the quarterly balance for the first two years.
Problem 4. Make an initial deposit (any amount you wish) into an account earning 7% APR
compounded annually. How long before your initial deposit grows by 50%? Drag as far down so
you can see when this happens.
Problem 5. Your lovely grandmother leaves you $20,000 in her will. Experts tell you if you
deposit this money into an account paying 9% interest compounded annually, and leave it there
untouched for 45 years, you will retire nearly a millionaire. Is this true?
Problem 6. Suppose you make $125 monthly payments into an account earning 5% APR
compounded monthly. What is the balance after 24 months?
Problem 7. Play around with this one: What monthly deposit would you need to make in order
to have $170,000 ready for your child in 15 years? Suppose the fund offers an APR of 5%.
Note 1: Make up any monthly deposit at first (it will be inco
ect) but program all of your
formulas. Then just change the monthly deposit and see what happens.
Note 2: If you are showing the monthly balance across 15 years, you’ll need 180 rows in
your spreadsheet.
Problem 8. You pay $8,000 for a municipal bond. When it matures after 20 years, you receive
$12,500. This shows about a 56.3% total return on investment. First, figure out the annual return
and then use Excel/Sheets to show that this agrees with the total return (to within a few cents).
Problem 9. Show an amortization table for the following loan:
A student loan of $24,000 with a fixed APR of 8% for 15 years.
Your table should show the fixed monthly payment ($ XXXXXXXXXXas well as how much of it goes to
principal and interest each month. After 15 years (180 payments) the balance should be $0 (paid
off).