Excel - Ch 7 Flashcards
Calculates total current value of loan/investment (with fixed rate, set payments & periods)
Present Value (PV)
=PV(rate,nper,pmt,[fv],[type])
PV Function
Calculates future value of investment/loan (with fixed rate, set payments & periods)
Future Value (FV)
=FV(rate,nper,pmt,[pv],[type]
FV Function
Calculates net present value of invenstment/loan (with fixed rate and future payments)
New Present Value (NPV)
=NPV(rate,value1,[value2])
NPV Function
Interest rate for 1 period; aka rate of return / % of return investment; often divided by annual rate
Rate
Represent sequence of payments & income during investment period; to provide accurate net present value; cash flow must occur at equally spaced times during periods & must occur at the end of each period
Value 1 (NPV)
Calculates # of payment periods for investment/loan (given fixed rate, periodic payment, present value)
NPER
=NPER(rate,pmt,pv,[fv],[type])
NPER Function
Calculates periodic rate for investment/loan (given payment periods, fixed payments, present value)
RATE
=RATE(nper,pmt,pv,[fv],[type])
RATE Function
Schedule that calculates interest per period, principle repayment for each payment, and remaining balance after each payment is made
Loan Amortization Table
Calculates payments for a loan with a fix amount, fixed periodic rate, for fixed time; insert - symbol in function to make result a positive result
Payment (PMT)
=PMT(rate,nper,pf,[fv],[type])
PMT Function
Calculates periodic interest rate for specified payment period on loan/investment given a fixed interest rate, specified term, identical periodic payments, and present value
Interest Payment (IPMT)
=IPMT(rate,per,nper,pv,[fv],[type])
IPMT Function
Specific payment period used to calculate the interest rate where the 1st payment period is 1; best to include payment # column (can use relative cell references)
Per
Represents the # of payment periods; should perform the calculation using absolute input cell references
Nper
(Optional); Represents timing of the payments; 0 is end of period, 1 is start of period; 0 is default
Type
Calculates principle payment for specified payment period on the loan/investment given a fixed interest rate, specified term, identical periodic payments; include - in function to create positive result
Principle Payment (PPMT)
=PPMT(rate,per,nper,pf,[fv],[type])
PPMT Function
Use to calculate cumulative interest paid through specific period; function accumulates the interest paid between selected payments or throughout entire loam; can specify between certain dates if you don’t want calculate the entire amount; use negative at start of function to present as positive
Cumulative Interest Payment (CUMIPMT)
=CUMIPMT(rate,nper,pv,start_period,end_period,type)
CUMIPMT Function
Use to calculate the cumulative principle through a specified payment period; accumulates the principle repayment between selected payments or throughour entire loan; for first payment, cumulative principle paid is the same as the first principle payment; use negarive at start of function to present as positive
Cumulative Principle Payment (CUMPRINC)
=CUMPRINC(rate,nper,pv,start_period,end_period,type)
CUMPRINC Function
