Stack Of Money On Table

The average American family’s net worth is $748,800. How does that number compare to yours? This post breaks down the average net worth by age group. If you want to discover how secure your financial future looks, you’ll love this post. Let’s get started.

Get out your calculator and see how you stack up against your peers. What is your net worth?

What Is Net Worth?

Knowing your net worth is one of the most important aspects of personal finance. It’s one of the best indicators we have to see if we are on target to meet our goals.

Time value of money tables are very easy to use because they provide a 'factor' that is multiplied by a present value, future value, or annuity payment to find the answer. So, armed with the appropriate table and a way to multiply (any calculator or even with pencil and paper) you too can easily solve time value of money problems. Thousands of dollars. A stack is one thousand dollars. Stacks is a synonym for thousands referring in terms of dollars. 5 stacks is 5 thousand dollars. By StaxxMoney December 07, 2013. Muvopct Movie Prop Money Full Print 2 Sided,100 pcs 100 Dollar Bills Stack,Copy Money for Movies,Videos,Teaching and Birthday Party. Home » Funny Gifts » Fake Money Stacks. Share the Fake Money Stacks with your friends.

Whether you want to be debt-free,buy a home, pay for your children’s college, or retire, you need to be on target.

Net worth is a way to see what’s holding you back. It’s a powerful indicator of your financial health.

Net Worth Calculation

To calculate your net worth, subtract the total value of your debts (aka liabilities) from the total value of your assets. Simply put, assets minus liabilities. You might have a positive net worth or a negative net worth.

Not really into math?

We know someone who will do the math for you for free.Personal Capital will give you a holistic view of your net worth, compare yourself to others’ average net worth in your age or income bracket, and track progress towards your goals.

Personal Capital

Budget like a business and focus on your cash flow. In addition to their budgeting software, they have an awesome suite of tools to help you optimize your investments. Did we mention it's free?

What Does Net Worth Include?

What are your assets? Do you estimate how much every possession you own would be worth if you sold it? If you owe money on your house or car, are those assets or liabilities?

Assets

• The market value of your investment accounts, including individual stocks, bonds, mutual funds, and even advanced platforms like Betterment or Fundrise
• The market value of your retirement savings in all retirement accounts. Include ones that charge penalties for early withdrawals like 401ks and IRAs
• The value of your home, rental property, or vehicles
• Cash value of your checking accounts and savings accounts.
• Items of significant value including artwork, antiques, or jewelry.

Liabilities

• Mortgages on your primary residence and rental properties
• Car loans and auto loans
• Student loans
• Personal loans
• Credit card debt
• Back taxes
• Medical debt
• Liens or judgments against you

What Gets Measured Gets Managed.

Now that you know what your net worth is, what should it be? The numbers are different for everyone because there are a lot of variables involved, but there are some general yardsticks that you can measure your numbers against.

Median vs. Mean Net Worth

Mean net worth is the average number of all the net worths. The median is the number that falls in the middle (or the middle value of the mean).

Here is the mean and median net worth by age. Remember, the mean is skewed by the nation’s super-wealthy, so don’t freak out.

For example, if you’re comparing the mean net worth of people in their 50’s, Jeff Bezos (valued at $121 billion) gets included along with the average American.

The median net worth of the average U.S. household is $121,700, while the mean is $748,800.

But the overall figures are just one indicator.

Small Stack Tables

What’s a Good Net Worth at 30?

The average net worth for families in the U.S. under the age of 35 was $76,300 while the median net worth was $13,900.

Maybe you had jobs as a teen and through college, but now you started your grown-up career and may have student loan debt, so it can be hard to start building net worth.

Your goal at this point in your life is to have half of your salary saved by age 30.

If you’re making $40,000 a year, that’s $20,000. It sounds impossible, but you have a few years to get there, and it’s easier than you think.

You may not have had a budget while you were in college. If not, now is the time to make one. A budget will tell you what’s coming in and going out each month.

It will show you where you are wasting money that would be better spent paying off debt or investing for your future.

Invest Your Money to Build Wealth

Now that we’ve established your budget and your student loan debt has a low-interest rate, you need something to do with that extra money. It’s time to invest.

Every day that passes before you start investing is money lost. There is no magic involved in investing, but there is a secret ingredient, time.

Typically we recommend people under 30 invest in the Golden Butterfly Portfolio.

Golden Butterfly Portfolio

This portfolio is a modified version of the Permanent Portfolio with one additional asset class. This is done to incorporate some of the characteristics of a few other notable lazy portfolios.

What you do in your 20's can lay the foundation for your entire financial life.

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Even small amounts of money invested now will grow exponentially because of the power of compounding interest.

The best places to start investing are brokerage firms like Vanguard, robo-advisors like Betterment, and your 401k if your employer offers one.

Betterment might be the easiest because there is a low bar to get started, no minimum, you need to know nothing about investing, and the fees are low.

If you aren’t contributing to your 401k, that’s next. One of the reasons people don’t invest is because they don’t pay themselves first.

They have good intentions; whatever money is leftover at the end of each month, they will start investing. But too often, there is no money left and investing is delayed.

When you participate in your 401k, the money is taken out of your paycheck before you see it, and you can’t spend what you can’t see.

Even better, does your employer offer matching? If they do, that is free money. Even if you have credit card debt, contribute enough to your 401k to be eligible for the match.

If you want to discover more about investing, we designed a whole blueprint to guide you through the process. You will never again have so few expenses and responsibilities as you do now. Take advantage of that.

Reaching Your Goals

We like Personal Capital because it’s easy to use and free.

To get started, all you have to do is attach your bank and credit card accounts, and they do the rest. It pulls those transactions into the program so you can see everything in one place.

Next, you can set up your budget. You can dive deep by setting up lots of different categories, but if you’re just starting, it’s okay to cover the basics like housing, utilities, and food.

If you find that you keep going over budget in specific categories, you can break them down further like groceries, dinners out, lunches out, convenience store snacks until you see where the problem is.

No idea how your budget should break down?

Use the 50/30/20 Budget Rule

There are tons of different formulas, but we like 50/30/20 because it’s simple. 50% of your income goes to fixed expenses like rent and utilities, 30% goes to variable costs like food and entertainment, and 20% goes to your financial goals, saving, or paying off debt.

Live like a college student for as long as you can, whether that means staying at home with mom and dad for a few extra years, living with roommates, or keeping your cheap college apartment.

When your housing and utility costs are low, you can tackle the student debt you have. You also may need to consider taking on a side hustle to make some extra cash.

If you have student loan debt, what is the interest rate? If it’s higher than 3-4%, you might consider refinancing.

Even a 1% decrease in interest rates can save hundreds or thousands of dollars over the life of a loan.

You can shop for rates with Earnest or negotiate the amount of your debt with National Debt Relief. They negotiate with your creditors to reduce what you owe and help you be debt-free faster.

If you’re lucky enough not to have student debt, you can use this time to build up six months worth of expenses for a fully-funded emergency fund. Once the emergency fund is in place, you can start investing.

What’s a Good Net Worth by 40?

The average net worth for families between the ages of 35 and 44 was $436,200, and the median was reported at $91,300.

The Federal Reserve Board’s triennial Survey of Consumer Finances recently published its latest net worth findings for the period between 2016-2019.

Your goal in your 30’s is to have twice your yearly salary saved by age 40. If you’re now making $75,000, you should have a net worth of $150,000 when you’re a 40-year old.

You may find yourself financing life on credit cards due to increased demands for your money. Spouses, homes, and children require more attention.

If you have credit card debt, it is going to be a struggle to stay on target. The average APR on a credit card is in the mid-teens, but it can be much higher.

If you just pay the minimums each month, you are never going to pay this debt off, and it will continue to drag down your net worth.

You need to attack this debt immediately. Don’t just throw money at these balances without a plan.

To pay off credit card debt efficiently, you can use the snowball or the stack method. Both have pros and cons, so read the specifics and decide which is best for you.

You and your spouse also need to look at income and expenses.

If the kids are in private school, you’re taking expensive vacations, you bought way more house than you can afford, and you’re driving new cars but don’t have any savings, something must change.

Your investing needs to become a little more sophisticated than it was in your 20’s.

Invest In Your Retirement

You should also be maxing out your 401k and opening an IRA(or Roth Ira) as well. If you have children, you may want to consider a 529 college savings plan, but not to the detriment of your retirement.

They have a lot longer to pay off student loans than you have to save for retirement.

If you have dependents, you need to buy life insurance. Health IQ rewards healthy people with lower premiums.

You also need to make a will and include who would get custody of your minor children in the event you and your spouse were to die.

What Should Your Net Worth Be at 50?

The average net worth for Americans between the ages of 45 and 54 is $833,200, and the median is $168,600. By age 50, your net worth should be roughly four times your salary.

If you make $100,000 a year, your target is $400,000. The good news is, this is likely to be the time in your career where you are earning the most money you will ever make.

You should assess your current position every year or two. Are you getting what you’re worth? What are other people in similar jobs getting?

When was your last raise? How much was it? It’s been shown that those who loyally stay at a company for more than two years make 50% less over their careers than job hoppers.

Loyalty is not rewarded. Your only commitment is to yourself.

Even if you’re happy where you are, you should always be on the lookout for a better opportunity. Attend networking events and stay plugged into new developments in your industry.

Grow Your Passive Income

It’s also a good time to start looking for ways to create a passive income stream. You now have more working years behind you than you have ahead of you, and you need to find ways to have money coming in after you’ve stopped working.

Rental property is our favorite form of passive income, and if you do it right, owning a rental property can be a completely hands-off experience.

In fact, Andrew started investing in real estate using turnkey rental properties, documented the entire process, and created a course on how he did it.

His experience provided him and his family with a generous passive income stream.

Rental Properties for Passive Investors

Our proven, data-driven approach to building a portfolio of income-producing rental properties that perform in the long-term.

You can see the course here.

If you want to invest in real estate without having to own a property, invest with Fundrise. Fundrise is an e-REIT and similar to investing in an ETF like Betterment.

If you still owe on your mortgage, it’s time to focus on getting that paid off.

What Should Your Net Worth Be at 60?

The average net worth for Americans between the ages of 55 and 64 is $1,175,900, and the median is at $212,500.When you reach 60, your net worth should be six times your yearly salary.

What Will Your Retirement Look Like

Currently, the maximum you can contribute to a 401k is $19,500 per year, and for an IRA, it’s $6,000. However, once you reach age 50, those numbers increase.

The max for a 401k is $26,000 per year and $7,000 for an IRA. Now is the time to max these out to the increased limits.

You should start thinking about what you want your retirement to look like. Are you going to downsize your home because you’re now an empty nester?

You won’t be tied to a location for your career, do you want to move to a new place, perhaps an area with a lower cost of living than where you are now?

Do you want to continue to work in some capacity, perhaps part-time or as a consultant? Is there a career you would like to pursue in the second half of your life now that money is less of a consideration? Perhaps you will want to go back to school.

You don’t have to make any decisions, but you should start planning what you want your post-working life to look like.

Your asset allocation needs to change to reflect your shortened investing horizon. Shift your allocation away from stocks toward less-risky bonds.

Get the Correct Insurance Coverage

Medical debt is the most significant cause of bankruptcy in America, and 40% of those who filed, for this reason, had health insurance. Do you have enough coverage?

If you don’t already have disability insurance, now is the time to investigate it. If you were unable to work, disability insurance could replace that lost income. How is your health?

Do any close relatives have chronic or genetic diseases?

Medicare doesn’t cover the cost of things like home health aids, so if you think you will want to stay in your home as long as possible when you can longer do daily things like cooking or bathing for yourself, buy long-term care insurance.

Net Worth by Retirement

The average net worth between the age range of 65 and 74 is $1,217,700. However, the median net worth is $266,400. When you are ready to retire, you should have roughly ten times your final salary saved.

Now you have to make some final decisions about the things we were considering above; will you move to a smaller, cheaper home, perhaps a condo or apartment, so you aren’t responsible for upkeep?

Use the 4% Rule

You can use the 4% rule to get your final retirement number. You can safely withdraw 4% of your savings every year for at least 30 years without running out of money.

If you plan to live on $60,000 a year, you need to have $1.5 million saved by the time you retire. Is that ten times your final salary?

Do you want to move to a new part of the country or move abroad? If you’ve lived in an urban area for your career, there are places where your dollar will go further.

Are you going to continue to work in some capacity? At what age do you want to start taking Social Security?

You should update your will. Your children are grown, and you know how they’ve turned out.

Maybe there is one black sheep you can’t leave a lump sum of money too, and you need to put it into a trust. If you have grandchildren, you may want to set up a trust for them as well.

If you haven’t done it already, you need to make arrangements for your medical care.

Who will have power of attorney in the event you are unable to make a personal or financial decision? What kind of measures should be taken to save your life?

Do you want to be on life support? Pre-planning and pre-paying for your funeral can take a lot of strain off your family at what will already be a tough time.

None of these are pleasant things to think about, but once you have them in place, you don’t have to think about them again. And you can enjoy the retirement you have worked so hard for.

Milestones

Don’t feel bad if your net worth is not where it should be. Financial situations differ. We’ve given you plenty of ideas to help you get there. And the numbers are individual to all of us.

Some of us plan to live in areas where the cost of living is low while others will remain childfree (which frees up about a quarter of a million dollars).

Some of us will inherit money from our parents while some will marry rich!

Even though these numbers are guidelines, you should track your net worth and see how you measure up. If you’re behind, determine how much you’ll need to catch up.

It’s never too late to get your financial house in order. Start today, not tomorrow.

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Virtually every finance textbook has, at the back, a series of tables that contain multipliers that can be used to easily calculate present or future values without the need for a financial calculator. In recent years these tables have slowly given way to financial calculators, but they are still widely used by some professors and on some professional exams.

This tutorial will demonstrate how to create these tables using Excel. The tables created here are much better than the textbook tables because they overcome a couple of limitations:

• Traditional tables only contain a few interest rate/number of period combinations. My tables allow you the flexibility to show almost any number of combinations. This eliminates the need for interpolation.
• Traditional tables have limited accuracy because they typically only display the interest factors to four decimal places. My tables can be reformatted to show up to 15 decimal places (not that you want that many). Thus, they can be more accurate.
• Traditional annuity tables (PVIFA and FVIFA) in most textbooks only work for regular annuities. With my tables you can instantly change the table from regular annuities to annuities due with only a single click.

As noted, these tables provide a great deal of flexibility. This flexibility is achieved using standard Excel features such as time value of money functions, two-input data tables, data validation, and conditional formatting.

You can download a complete copy of the Time Value of Money Interest Factors workbook.

Using the TVM Tables

Time value of money tables are very easy to use because they provide a 'factor' that is multiplied by a present value, future value, or annuity payment to find the answer. So, armed with the appropriate table and a way to multiply (any calculator or even with pencil and paper) you too can easily solve time value of money problems.

The image below shows a snippet of a PVIF (Present Value Interest Factor) table:

In this case, the table provides a factor that is multiplied by a future value of a lump sum cash flow in order to obtain its present value.

Let's look at an example:

Imagine that you need to have $5,000 three years from now and can earn 4% per year in your savings account. How much do you need to deposit today in order to achieve your goal?

To solve this problem, we simply multiply the future value ($5,000) by the appropriate PVIF table value:

PV = FV x PVIF

So, look down the first column of the table for the 3 period row, and then across to the 4% column. The PVIF is 0.8890 so the answer is:

PV = 5,000 x 0.8890 = 4,445

Therefore, if you deposit $4,445 today in a saving account that pays 4% interest compounded annually, then you will have $5,000 in three years.

Big Stacks Of Money

But what happens if the interest rate is 3.5% instead of 3% or 4%? Then you have to interpolate because 3.5% is not in the table. You can approximate the answer by averaging the PVIF table values for 3% and 4% and using that average for the PVIF. The average is 0.90205 so you would get an answer of $4,510.25. The correct answer, though, is $4,509.71 so your answer would be off by about $0.54. Not too bad, but the tables that we create here can easily have the exact interest rate that you need.

Creating the Interest Factor Tables

The key to creating the tables is to understand that they are all based upon the basic time value of money formulas. For example, the PVIF factors from the table above are calculated by using $1 for the FV in the equation for present value:

Substituting 1 for FV, 3 for N, and 0.04 for i we get 0.8890. That is the same as the PVIF that we originally pulled from the table. Since we are building these tables with Excel, we can use its built-in functions (PV() in this case) instead of the mathematical formula.

Two-Input Data Tables

Rather than creating a large table with the PV() function repeated over and over again, we will use Excel's two-input data table feature. This allows us to enter a formula once, and then it will automatically populate the table based on values in the left column and top row of the table. This feature is typically used for sensitivity analysis. For example, we might want to see how the present value changes when both the interest rate and number of periods changes. In fact, that is what we are doing here, except that the FV is $1 instead of some other value. The snippet below shows the formulas that are in the PVIF table from above:

Note that the PV() function is only used in the upper-left corner of the table. The rest of the table is filled in automatically when we use the Data Table command. It works by substituting the a value from the top row and left column into the cells specified (F1 and F2). Excel does this repeatedly to fill in the table. Table recalculation can be slow for large tables or complicated formulas, so one of Excel's calculation options is to Automatic Except for Data Tables. We don't need to use that setting here, but you should be aware that it exists.

We will see how to create the data table in section below.

Create the PVIF Table

Our PVIF table will serve as a template for each of the other three tables. Once we get this working properly, we can simply copy the worksheet and then change the formula that drives the table.

Open a new workbook and then create a worksheet that looks like the one below:

Enter everything exactly as shown, except for the following:

• In A10 enter the formula: =PV(F1,F2,0,-1). This is the formula that will drive our data table. The 0.9901 in the picture is simply the current result of the formula.
• In B10 enter the formula: =B1.
• In C10 enter the formula: =B10+$B$2. This will 'step up' the interest rate. Copy this formula across to AE10 (that is 30 columns of interest rates).
• In A11 enter the formula: =B3.
• In A12 enter the formula: =A11+$B$4. Copy this formula down through A70. This will 'step up' the period number by the number of units specified in B4.
• Do not add the shading in row 10. We will do that with Conditional Formatting later on.

Before creating the data table, I should explain the data in E1:F2. This is the area (specifically, F1 and F2) where Excel will substitute the values from the top row and left column to get the numbers to paste into the table. You can try it yourself: enter 4% into F1 and 3 into F2. Notice that the value in A10 has changed to 0.8890. That is the same value that we used for the PVIF in the original example problem above.

So, essentially what happens in the data table is that Excel will plug numbers into F1 and F2 and then recalculate the formula in A10. The results will be placed into an array at the intersection of the appropriate row and column. The Table() function will display that array in our table area (B11:AE70).

To create the data table we need to select A10:AE70 and then go to the Data tab, click the What-If Analysis button, and then choose Data Table. You will now see the following dialog box:

This is where you tell Excel that cell F1 is where to plug in the numbers from the top row of the table (the interest rates) and that F2 is where to plug in the numbers from the left column (the period numbers). Please note that the actual numbers in F1 and F2 do not matter at all because Excel is going to replace them to create the table. Again, this is a two-input data table. You can also create a one-input data table by specifying only the row or column input cell, but that wouldn't suit the purpose here. Your worksheet should now look like the one below, except for the shading in row 10.

At this point the PVIF table is fully functional. If you change the value in B1, for example, then the interest rates in the table will change, and the interest factors will be recalculated as well. However, we need to clean this up a bit to make it more functional.

Make it Fancy Using Formatting Techniques

Formatting isn't just for making your spreadsheet pretty. It can also add to the functionality. In this section we will see how to apply several different kinds of formatting and data validation rules to make the TVM tables more flexible and functional.

Hiding Text and Custom Number Formatting

Let's take care of a couple of simple items first. We don't need to see the contents of E1:F2, so we can hide those cells by setting the font color to white.

Also, we don't need to see the number in A10. In fact, it just confuses things. So, we will apply a custom format to display the text 'Period' instead of the result of the formula. Note that this does not change the formula or the result, only what appears in the cell.

To set the custom number format, select A10 and then right click and choose Format Cells. Go to the Number tab and choose the Custom category. In the Type edit box, enter 'Period' (include the quotation marks). This tells Excel to display the word 'Period' regardless of the result of the formula. Click the OK button to apply the custom number format. Note that if you look at the formula bar you will see that the formula is still there. Only the formatting of the result has been changed.

Let's set one more custom number format, this time in A11:A70. We want the period numbers to have two decimal places and to be roughly centered in column A. The format mask to do that is 0.00_______). Note that the underscores add spaces to the number format, and that the right paren at the end is required.

Applying Conditional Formatting Rules

Conditional formatting changes the look of a cell or range when certain conditions are met. To set up the rules, select a cell or range and then click the Conditional Formatting button on the Home tab of the ribbon. Choose New Rule from the menu. We want to create rules that are based on formulas, so choose the last item in the Rule Type list (Use a formula to determine which cells to format). This leads to the following dialog box:

You can see how the rules are created. They must be formulas that will evaluate to either True or False. Exit from the dialog box so that we can start creating new rules.

The first rule will create the shading and borders for the top row of our table. Select A10:AE10 and then call up the dialog box above. We only want to apply the format to the cells if they are in the 'visible' part of the table (that is, the column is within the range specified by the number of columns in B6). So, the rule will be:

=Column()<=($B$6+1)

We need to add 1 to the number of columns because we are including column A, which is not a part of the 30 columns specified. Apply a format by clicking the Format button and apply some borders, background shading, and a bold font. Click OK to apply the formatting rule. To test it, change B6 to, say, 10 and make sure that only A10:K10 have this format. If you change B6 to 15, then A10:P10 should have the format.

For the second rule we want to apply a border to the right edge of column A, but only those rows that are supposed to be visible in the table. Select A10:A70 and then create this formatting rule:

=AND(COLUMN()=1,ROW()-10<=$B$5)

This rule checks to see that it is in column A and that the row number is in the visible range. Apply a format with a border on the right edge only, and set the font to bold.

The third rule will hide everything outside of the visible part of the table as defined by the values in B5:B6. Select the entire table (A10:AE70) and then use this rule:

=OR(COLUMN()-1>$B$6,ROW()-10>$B$5)

In the format, set the font color to white. That will preserve the data, but it will be invisible because the font color is the same as the background color.

The fourth, and final, rule will underline the last visible row, but only in visible columns. The rule is:

=AND(ROW()-10=$B$5,COLUMN()<=$B$6+1)

Apply a border to the bottom using the Format button. Note that if some of your rules don't work properly, you can always go back and edit them by choosing Manage Rules from the Conditional Formatting drop-down.

Applying Data Validation Rules

For the final touch, we want to make sure that a user cannot enter data that is unexpected in B1:B6. For example, we don't want them to enter a negative interest rate in B1. We can do this by applying some data validation rules to those cells.

Select B1 and then click the Data Validation button on the Data tab. This will launch the following dialog box:

For the interest rate we want to allow any decimal number between 0 and 0.99 (0% to 99%), though you may want to set a lower maximum. Choose Decimal from the Allow list, between from the Data list, set the minimum to 0, and the maximum to 0.99. If you choose, you can set an input message that will popup when the cell is selected, and an error message that is displayed if the user enters a number outside of the allowable range.

Set up similar rules for B2:B6 as follows:

• B2 - Decimal between 0 and 0.25 (0 to 25%)
• B3 - Whole number between 1 and 100
• B4 - Whole number between 1 and 25
• B5 - Whole number between 1 and 60
• B6 - Whole number between 1 and 30

That completes the PVIF table. The others are almost done as well!

Creating the FVIF Table

The FVIF (Future Value Interest Factor) table is identical to the PVIF table, except that it uses the FV() function in A10 and different text in A9. So we will simply copy the PVIF worksheet. Right click the sheet tab for the PVIF sheet and choose 'Move or Copy' from the menu. Be sure to click the Create a Copy box at the bottom of the dialog box.

Change the text in A9 to 'Future Value of $1 Invested Today at the End of N Periods (FVIF)' and the formula in A10 to =FV(F1,F2,0,-1). That's it. Here is a small piece of the FVIF table so that you can be sure that yours is correct:

Creating the PVIFA Table

The PVIFA (Present Value Interest Factor Annuity) table is only slightly more complicated, but start by creating another copy of the PVIF table. The complication is because we want the table to handle both regular annuities and annuities due.

Start by adding some data in row 7. In A7 enter 'Type' (for the type of annuity). In B7 we will enter another data validation rule. Click B7 and then the Data Validation button. This time we want to set the Allow to List and then the Souce to 'Regular, Due' (do not type the quotes, but do include the comma). This will provide the user with a drop-down list from which they can choose the type of annuity.

For the text in A9 we need to specify slightly different text depending on the type of annuity. We will use the following IF() statement:

=IF(B7='Regular','Present Value of an Annuity of $1 per Period for N Periods (PVIFA)','Present Value of an Annuity Due of $1 per Period for N Periods (PVIFAd)')

Finally, in A10 we will use the PV() function again, but this time we will set FV to 0 and PMT to 1. Additionally, we need to specify the Type argument to the function. For regular annuities this argument is 0, but for annuities due it is 1. The formula in A10 is:

=IF(B7='Due',PV(F1,F2,-1,0,1),PV(F1,F2,-1,0,0))

Here is a snippet of the table as it appears for regular annuities:

If you change to an annuity due (in B7) then, for reference, you should get 1.000 in B11 and 1.9901 in B12.

Creating the FVIFA Table

To create the FVIFA (Future Value Interest Factor Annuity) table, start by copying the PVIFA table that we created above. The tables are almost identical, except for the text in A9 and the formula in A10.

For the text in A9 use the following IF() statement:

=IF(B7='Regular','Future Value of an Annuity of $1 per Period at the End of N Periods (FVIFA)','Future Value of an Annuity Due of $1 per Period at the End of N Periods (FVIFAd)')

In A10, we need to change the PV() function to FV() as follows:

=IF(B7='Due',FV(F1,F2,-1,0,1),FV(F1,F2,-1,0,0))

Note that we still need slightly different formulas, depending on the type of annuity as described above. Your FVIFA table should look like the one below:

For reference, if you change B7 to an annuity due you should get 1.0100 in B11 and 2.0301 in B12.

Stack Of Money Side Table

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