Unit 4. Formulas and functions (VI)


Financial functions.

Excel is one of the most powerful existing tools to work with financial information and calculations, offering a wide range of pre-designed functions to create your own "savings bank at home"

All of these functions are grouped in the Financial category.

We are going to study the wide range of financial functions offered to us by Excel:

Function
Description and Example
See detail

DB(cost,salvage,life,period,month)

Returns the depreciation of an asset for a specified period using the fixed-declining balance method.

DDB(cost,salvage,life,period,factor)

Returns the depreciation of an asset for a specified period using the double-declining balance method or some other method you specify.

VDB(cost;salvage;life;start_period;end_period;factor;no_switch)

Returns the depreciation of an asset for a specific period, including partial periods

ISPMT(rate,per,nper,pv)

Calculates the interest paid during a specific period of an investment.
NPER(rate;pmt;pv;fv;type)
Returns the number of periods for an investment
PMT(rate;nper;pv;fv;type)
Calculates the payment for a loan based on constant payments and a constant interest rate.

IPMT(rate;period;nper,pv;fv;type)

Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate.

PPMT(rate,per,nper,pv,fv,type)

Returns the payment on the principal for a given period for an investment based on periodic, constant payments and a constant interest rate.

SLN(cost,salvage,life)

Returns the straight-line depreciation of an asset for one period.

SYD(cost,salvage,life,per)

Returns the sum-of-years' digits depreciation of an asset for a specified period.

RATE(nper;pmt;pv;fv;type;guess)

Returns the interest rate per period of an annuity.

IRR(values;guess)

Returns the internal rate of an investment for a series of cash values

MIRR(values;finance_rate;reinvest_rate)

Returns the internal rate of modified return

PV(rate;nper;pmt;fv;type)

Returns the actual value of an investment

FV(rate:nper;pmt;pv;type)

Returns the future of an investment based on periodic and constant payments plus a fixed interest rate

 

NPV(rate;value1;value2;...)

Returns the actual net value of an inversion, from a discount rate and a series of future payments

 

You can practise some of the functions explained here in the Exercises on financial functions.



 

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