Case Detail

Case Summary

Excel(lence) with Interest

Case Number: 5-217-256, Year Published: 2018

HBS Number: KE1053

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Key Concepts

Business Plans, Cash Flow Analysis, Decision Making, Financial Planning, Financial Strategy

Abstract

James, a financial advisor at Bank Private, is advising a high net worth client with $1 million to invest. Bank Private can offer an investment that returns a fixed rate of 5.5% (compounded annually) for twenty years. James needs to prepare financial projections for the client that include annual interest and annual taxes as well as total interest and total taxes.

Learning Objectives

After reading and analyzing the case, students will be able to compound interest and demonstrate sound spreadsheet development skills, including developing spreadsheets with dimensionality; copying and pasting formulas; using static references in formulas; graphing; and using SUM and IF commands.

Number of Pages: 2

Extended Case Information

Teaching Areas: Management

Teaching Note Available: Yes

Geographic: United States

Industry: Financial services

Decision Maker Position: Financial advisor

Decision Maker Gender: Male