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CGS 2518 Armstrong EXAM 2 Questions and Answers
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CGS 2518 Armstrong EXAM 2 Questions and Answers
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CGS 2518 Armstrong EXAM 2 Questionsand Answers
Rate - Answers -Function to calculate the interest percentage per period of a financial
transaction
PV - Answers -Function to calculate the value at the beginning of a financial transaction
FV - Answers -Function to calculate the value at the end of a financial transaction
PMT - Answers -Function to calculate periodic payments into or out of a financial
transaction
NPER - Answers -Function to calculate the number of compounding periods in a
financial transaction
Type - Answers -Use a 1 for this argument to indicate that interest will be paid at the
beginning of each compounding period
Use a 0 for this argument to indicate that interest will be paid at the end of each
compounding period
Compound Interest - Answers -This type of interest is calculated based on original
principal regardless of the previous interest earned
Simple Interest - Answers -This type of interest is calculated based on principal and
previous interest earned
Excel uses serial numbers to represent dates and times. For dates, Excel represents it
as the number of days since January 0, 1900. Therefore January 1, 1900 would be
represented by the serial number 1. Times are represented by decimals. Noon on
January 1, 1900 would be represented by the serial number 1.5. - Answers -How does
Excel store date and time values?
YEARFRAC(start_date,end_date,basis) .the basis argument of 1 uses actual values as
in the correct number of days per month, using 0 as the basis causes the function to
calculate the months to have only 30 days and years using 360 days. - Answers -What
are the arguments for the YEARFRAC function? What are the possible values for
calculating months are years using this function?
You should use a PivotTable report to analyze data when you need a way to summarize
and analyze data from different perspective such as by month, quarter and year. It
, allows the data to be easily rearranged to achieve such analysis. - Answers -When
should you use a PivotTable report to analyze data?
Report Filter, Column Labels, Row Labels, Values - Answers -List and describe the four
areas of a PivotTable report.
SLN - Answers -Function to calculate straight line depreciation based on the initial
capital investment, number of years to be depreciated, and salvage value
PPMT - Answers -Function to calculate the amount of a specific periodic payment that is
principal in a given period
IPMT - Answers -Function to calculate the amount of a periodic payment that is interest
in a given period
CUMPRINC - Answers -Function to calculate the cumulative principal paid between two
periods
NPV - Answers -Function to determine the value of a variable set of cash flows
discounted to its present value
IRR - Answers -Function to determine the rate of return, where the net present value of
the cash flow is 0
=FV(5.0%/4, 5*4, -200, -6000,0)
=FV(rate, nper, pmt, [pv],[type]) - Answers -Assume that you are investing $6000 in a
saving plan today and will make additional contributions of $200 per quarter. The plan
pays 5% interest per year compounded quarterly. Write an Excel formula to determine
how much your saving will be worth in five years
=RATE(30*12,-3000,375000,0,0)
=RATE(nper, pmt, pv, [fv], [type], [guess]) - Answers -Write an Excel formula to
determine the yearly interest rate being charged by the bank on a $375000, $30-year
mortgage. You make a monthly mortgage payment of $3000 and the value of the loan
at the end of 30 years is 0. Interest is compounded monthly.
=NPER(6.0%/12,-370,-20500,0)
=NPER(rate, pmt, pv, [fv], [type]) - Answers -Assume that you are buying a car for
$23500 with a $3000 down payment, and you are borrowing the rest from a bank at
6.0% annual interest compounded monthly. Your monthly payments are $370. Write an
Excel formula to determine the payment that must be made each month on this loan
=PMT(5.0%/12,15*12,100000,-5000)
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