FV Function Example Word Problem 1:

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1 FV Function The FV Function calculates the future value of an investment, given a fixed interest rate, term, and periodic payment. You can use the FV Function to determine how much money you would have in an IRA (Individual Retirement Arrangement/Account) after a particular period of time, for example. When you are using the FV Function, you need to know a variety of details about the account, including: How Often Deposits or Investments are Made (Period Length) Amount Deposited or Invested Per Period Term (length in years) Interest Rate Received from Bank or Investment (also known as APR annual percentage rate this will determine how much profit you make) You need to calculate the rate per period (periodic interest rate) for the rate argument, just like we did for the PMT function.

2 FV Function Example Word Problem 1:

3 FV Function Solution:

4 Showing Formulas Use the shortcut CTRL ` (CTRL ~) to show formulas. I will require you to print your formulas for some activities. Alternatively, you can use the command available in the Formulas tab, Formula Auditing group.

5 FV Function Solution (Formula View): Note: Parenthesis are not required to be used in this instance because of the order of precedence.

6 Excel: FV Function Operator/Order of Precedence Exponentiation ^ Division / Multiplication * Subtraction - Addition +

7 Showing Tracing Arrows Use the tracing arrows in the Formulas tab, Formula Auditing group to see which cells are used in certain functions (trace precedents), and which cells are dependent upon a certain cell (trace dependents). Select Remove Arrows to clear the tracing arrows. These features are useful for troubleshooting problems.

8 Printing to a Single Page To print your worksheet to a single page, go to the Page Setup dialog box in the Page Layout tab, then adjust the preferences to fit to 1 page. Set the orientation appropriately for the worksheet you are printing.

9 FV Function Example Word Problem 2:

10 FV Solution:

11 FV Solution (Formula View):

12 Goal Seek Goal seek is typically used with the PMT and FV functions. Goal seek can be used to quickly determine what a certain variable needs to be to achieve a goal. For example, you may want to know what the annual investment in an IRA must be to achieve a goal of $1,000,000 in the account after 25 years. Click on an empty cell, go to the What-If-Analysis command, and use Goal Seek.

13 Goal Seek

14 Goal Seek This is the annual investment required to reach the goal of $1,000,000 in the account at the end of 25 years. (It far exceeds the amount that can be contributed to an IRA annually per government regulations.) From Google.com

15 FV Function Example Word Problem 3:

16 Today Function The today function: =TODAY() It has no arguments, and returns the date that the computer is set to. It is volatile, so if you save it and reopen the file one month later the new, updated date will appear. The today function can be used in formulas involving time. Excel uses a serial number system for dates. It is designed so that January 1, 1900 is represented as 1, and January 2, 1900 is 2, and so on. The serial number for 2/23/17 is You can see the serial number by entering a date, then changing the number format to General : Note: If you want to retrieve the date and time that the computer is set to, use the =NOW() function.

17 Today Function To see the serial number for any given date, type the date in Excel, then change the Number Format to General. To change it back to a date, select either the Short Date or Long Date setting.

18 Today Function To find out the number of days between any two dates after 1/1/1900, just take the more recent date minus (-) the earlier date (the recent date is the greater serial number) using cell references. If you want to insert the current date, you can type: =Today() We can also add a cell that calculates years old by dividing days old by days in a year.

19 Today Function To find out how many days it is until a future date, take the future date (the larger serial number) minus the current date (the smaller serial number).

20 Important Basic Functions AutoSum SUM function will add together the values in a range. AVERAGE function will return the arithmetic mean of the values in a range. MIN function will return the minimum value in a range. MAX function will return the maximum value in a range. MEDIAN function will return the midpoint value, which is the value that one half of the population is above or below. The AutoSum command can be used to quickly use common functions. It is in the home tab, editing group.

21 Auto Calculate If you select a range with your cursor, the status bar can display the sum of the selected range, and other calculations as well. To change what the status bar automatically calculates, right click on the status bar.

22 SUMIF AVERAGEIF The SumIF and AverageIF functions can perform calculations based upon one condition. Range argument: the range that contains the criteria. Criteria argument: the criteria you are searching for in the Range. Sum_Range argument: the range that contains the values you want to sum.

23 SUMIF AVERAGEIF The SumIF and AverageIF functions can perform calculations based upon one condition. Range argument: the range that contains the criteria. Criteria argument: the criteria you are searching for in the Range. Average_Range argument: the range that contains the values you want to average.

24 SUMIFS AVERAGEIFS The SumIFS and AverageIFS functions can perform the calculation based upon two conditions. sum_range argument: the range that contains the values you want to sum. criteria_range1 argument: the range that contains the first set of criteria. criteria1 argument: the criteria you are searching for in the first range. criteria_range2 argument: the range that contains the second set of criteria. criteria2 argument: the criteria you are searching for in the second range.

25 SUMIFS AVERAGEIFS The SumIFS and AverageIFS functions can perform the calculation based upon two conditions. average_range argument: the range that contains the values you want to average. criteria_range1 argument: the range that contains the first set of criteria. criteria1 argument: the criteria you are searching for in the first range. criteria_range2 argument: the range that contains the second set of criteria. criteria2 argument: the criteria you are searching for in the second range.