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[Spring 2014] Spreadsheet Functions

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11 views

[Spring 2014] Spreadsheet Functions

Uploaded by

amamoursi
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Spreadsheet Functions

Introduction
 The predefined functions on a
computer spreadsheet can greatly
reduce the amount of hand and
calculator work.

 Excel is used because it is readily


available and easy to use.
1. Present Worth
 PV(i%,n,A,F,type):
Returns the present value of an
investment.
Example
2. Future Worth
 FV(i%,n,A,P,type)
Returns the future value of an
investment.
Example
3. Annual worth
 PMT(i%,n,P,F,type)
Calculates the payment for a loan
based on constant payments and a
constant interest rate.
Example
4. Number of Periods
(years)
 NPER(i%,A,P,F,type)
Returns the number of periods for
an investment based on periodic,
constant payments and a constant
interest rate.
Example
5. Rate of Return
 RATE(n,A,P,F,type)
Returns the interest rate per period
Example
6.Rate of Return
 IRR(first_cell:last_cell)
Returns the internal rate of return
for a series of cash flows
Example
7. Present Worth
 NPV(i%, 2nd_cell:last_cell) +
1st_cell
Calculates the net present value of
an investment by using a rate of
return and a series of future
payments (negative values) and
income (positive values).
Example
Example
Very Important
 If some of the parameters don’t
apply to a particular problem, they
can be omitted and zero is
assumed. If the parameter omitted
is an interior one, The comma
must be entered.
 The function must be preceded by
an equals sign (=) in the cell where
the answer is to be displayed.
Very Important
 The red answer indicates a
negative amount.
 Cash you pay out is represented by
a negative number; cash you
receive is represented by a
positive number.
 All cells should have an entry. The
entry can be $0…but not blank!

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