Finance Chapter 4 - Question 45 Comparing Cash Flow Streams

Excel File

You have your choice of two investment accounts.

Chapter 4 - 45
Comparing Cash Flow Streams
	Investment A
	Nper	15	Years
	PMT	1250	Month
	rate	0.0615
	Investment B
	Rate	0.07
	Continuous Compound
	Nper	15	Years
	How much to invest in B so that it equals A in 15 years?
	FV A	$368,207.83	=FV(C7/12,C5*12,-C6)
	PV B	-2.86	=-EXP((C10*C5))
		368207.83	=C19*C17
	PV B	-128,849.82
	Goal Seek, in the data ribbon was used to calculate the yellow cell.
	Set Sell	C18
	To Value	FV A
	By Changing	PV B (yellow)