Before you begin:
Look for your name on the sign-up sheet (given by your instructor) and copy the Line #, Principal, and APR.
Review the savings plan formula (regular payments) from section 4-C of your text.
Remember that all formulas in an Excel spreadsheet begin with an equality symbol *=*
Recall that to reference a cell, you can click on it or type its column letter and row number.
Download Spreadsheet:
• Download or ask your instructor for the file “Savings _Plan_ Template xls” which provides you a spreadsheet framework. This helps you concentrate on the three methods of calculating the lump sum investment without worrying about the formatting details.
Procedure: Using the template you have downloaded and the prototype figure below, construct a savings plan spreadsheet using three different methods (iteration (steps). formula, and Excel function) that will arrive at the very same balance if properly done.
Be sure to type in the Givens box the same principal, compound, and APR as the prototype figure. From Month #18 (row 26) and thereafter, you will be building formulas that are flexible enough to accommodate other values you type into the Givens box later.
