Excel for Finance - Fullerton College

[Pages:14]Excel for Finance

Loan Calculator Data Table

Amortization Table

Financial Functions

Many financial functions

? Functions for Calculating Depreciation

? Straight line ? Declining balance depreciation ? Double declining balance ? Sum of the year's digits

Other Financial Functions

Present value Future value Internal rate of return Payments

Functions we will use in this Chapter

PMT (to calculate monthly payments)

PV (to calculate the present value of a loan--a lump sum to pay it off early and avoid the interest that would accrue in the remaining years)

Three Parts of the Worksheet

$ Loan Calculator on a Disk $ Data Table to Show Payments at

Various Interest Rates $ Amortization Table to Show Pay off

Amounts Throughout the Life of the Loan

Information Needed for the Loan Calculator

Date of the Loan Item to be Purchased Price Down Payment Interest Rate Years of Loan

Loan Information that Excel will Calculate for us

Loan amount (after down payment is deducted from price)

Monthly payment Total interest paid over the life of the loan Total cost of the loan

The Data Table

Takes initial information from the loan calculator

Lists monthly payments, total interest, and total cost for several interest rates at once for comparison purposes

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download