TAILIEUCHUNG - Machinery's Handbook P2

Series.—Some hand calculations, as well as computer programs of certain types of mathematical problems, may be facilitated by the use of an appropriate series. For example, in some gear problems, the angle corresponding to a given or calculated involute function is found by using a series together with an iterative procedure such as the Newton-Raphson method described on page 33. | Guide to Machinery s Handbook 27th Edition ADVANCED SPREADSHEET CONCEPTS 27 spreadsheet s Future Value FV built-in function. Then redo the Compound Interest problem found on Handbook page 126. Example 1 Compound Interest At 10 per cent interest compounded annually for 3 years a principal amount P of 1000 becomes a sum F 1000 1 10 100 3 1 . To solve this problem using a spreadsheet use the Future Value FV built-in equation. FV Rate Nper Pmt Pv where FV F or the Future Value of the amount owed or received. Rate I or nominal annual interest rate per period. In this yearly case devide by 1 for monthy payments devide by 12. Nper n or number of interest periods. In this case 3. If the interest were compounded monthly then Nper 3 years x 12 periods yr. 36 periods Pmt R or the payments made or received. For a compound interest loan Pmt PV P or principle amount lent or borrowed. Plugging in the appropriate values give the answer. Again note that leaving column B unformatted or formatting column C makes no difference for the final answer but does make it easier to understand the spreadsheet values. Table 2. Compound Interest Calculations Spreadsheet A B C D 1 Value Value 2 Rate .1a 10 b 3 Nper 3a 3b 4 Pmt 0a 5 PV -1000a-c - 1 c 6 FV FV B2 B3 B4 B5 1 1 a Unformatted cell. b Formatted cell. c This number is negative because you are loaning the money out to collect interest. Spreadsheet Advanced Concepts. One of the great strengths of spreadsheets is their ability to quickly and easily do what-if calculations. The two key concepts required to do this are cell content Copyright 2004 Industrial Press Inc. New York NY Guide to Machinery s Handbook 27th Edition 28 ADVANCED SPREADSHEET CONCEPTS and formula copying and pasting and relative and absolute cell addressing. Copying and Pasting Spreadsheets allow cells to be moved or copied and pasted into new locations. Since a chain of cells can represent a complete problem and solution copying .

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