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Published byRocio Elsbury Modified over 2 years ago

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Financial Functions

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Overview Power of Excel = Calculations –Loan Calculations –Expense Calculations –Consolidate Values –Search for Values

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Loan Calculations Open Excel & rename Sheet 1- Loan In cell A1- Date; A2- Principal; A3- Interest; A4- Years; A5- Payment In Cells B1- 6/1/2006; B2- $20,000; B3- 5.5%; B4- 5

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Insert Formula Function Click in cell B5 (Payment) and click fx next to formula bar, search for- calculate loan payment, PMT, click OK In the Function Arguments Box, type –Rate- B3(5.5%)/12 –Nper- B4(5)*12 –PV- B2(20,000) –Click OK Amount is red- it’s a payment (negative) Change #’s to see payment change

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Name Cell Ranges Look in formula bar to see formula for cell Select the entire range of cells A1:B5 You can name a range of cells by selecting the range and going to Insert, Name, Create Uncheck top row if you don’t have headings there Name box reflects name change Formulas are easier to read with names

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Amortization Table Drag the sheet you were just working with over while holding the Ctrl key down to copy it Rename it Amortization Make D1 =B1, click and drag to fill months In cell E1, Type =B2

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Calculate Future Value While in cell E2, click the fx button, type future value of a loan- FV, click OK –Rate- B3(Interest Rate)/12 –Nper- 1 –Pmt- B5 (Payment) –PV- E1 (Principal) It is red for negative, type a – between = and FV (makes it positive) Click & Drag formula down, use format painter To add more months, select last two rows and drag down

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Dynamic Dates Select cell D2- click fx, Date –Year- YEAR(D1) –Month- MONTH(D1) +1 –Day- DAY(D1) OR 1 (first of the month) Drag D2 down to the end of the table Now dates will change automatically in Amortization Table when you change the date in the Payment Calculator

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