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(1) What discrete annual interest rate, at an initial balance of $1,000, results in $5,000 after 10 yea
(2) What initial balance, at an interest rate of 10%, results in $5,000 after 10 years?
er 10 years?
e worth $5,000?
ber of years is located in one cell location
Discrete Annual Compound Interest Use Solver when you have a function F(x) =
and you want to find x so that
Interest Rate y has a target value, or is at a maximum or
17.46%
you can also place contraints on range of x
Year Cash Balance you can also solve when the function is on
0 $1,000.00 more than one variable: F(x1, x2) = y.
1 $1,174.62
2 $1,379.73 use Solver to calculate
3 $1,620.66
4 $1,903.65 (1) What discrete annual interest rate, at an
5 $2,236.07 results in $5,000 after 10 years?
6 $2,626.53 (2) What initial balance, at an interest rate
7 $3,085.17 results in $5,000 after 10 years?
8 $3,623.90 (3) Challenge problem
9 $4,256.70 Suppose you wanted to know: after how m
10 $5,000.00 will $1000 at 7% be worth $5,000?
Hint: this requires re-structuring the formu
so that the changing number of years is loc
See solution next sheet
have a function F(x) = y
x so that
r is at a maximum or minimum.
ntraints on range of x
en the function is on
le: F(x1, x2) = y.
Interest Rate
7.00%
number of years 10
restated formula
Discrete Annual Compound Interest
Interest Rate
7.00%
1+C4)^$G$8