1. QUESTIONS IN SPREADSHEET Dr. Faiyaz Gadiwalla Hinduja College

2. QUESTIONS IN SPREADSHEET FV(): Returns the future value of an investment based on periodic, constant payments and a constant interest rate. Syntax FV(rate, nper, pmt, pv, type) rate is the interest rate per period. nper is the total number of payment periods in an annuity. pmt is the payment made each period; it cannot change over the life of the annuity. Typically, pmt contains principal and interest but no other fees or taxes. If pmt is omitted, you must include the pv argument. pv is the present value, or the lump-sum amount that a series of future payments is worth right now. If pv is omitted, it is assumed to be 0 (zero), and you must include the pmt argument. type is the number 0 or 1 and indicates when payments are due. 0 or omitted indicates payments are made at the end of the period, while 1 indicates that they are made at the beginning of the period.

3. QUESTIONS IN SPREADSHEET Suppose you wants to start saving Rs.100 every month for a child’s college education, starting from the first month of child’s birth and want to know what would be the amount after 18 years at the rate of interest 5% compounded annually, then the future amount can be computed using the function. = FV(5%/12,18*12,-100,0,0) This function return 34,920.20 which is the amount returned to you.

4. QUESTIONS IN SPREADSHEET PV(): The PV function is used to determine how much a specific future amount is worth today Syntax PV(rate,nper,pmt,fv,type) Suppose you want to take car loan of Rs.4,00,000 and a company offers an installment of Rs.9100 per month for 5 years to pay back this loan, assuming that interest rate is 12% P.A., the following formula will compute the present value of the amount. =PV(12%/12,5*12,-9100) This function returns 409,090.85 which is the present value of the amount you are paying.

5. QUESTIONS IN SPREADSHEET PMT(): Calculates the payment for a loan based on constant payments and a constant interest rate. Syntax PMT(rate,nper,pv,fv,type) Suppose you want buy a refrigerator worth Rs. 44,000/- and you want to know how much you have to pay as monthly payments when you are making down payment of Rs. 4000/- and the dealer is offering 4% financing for a 2 year loan. =PMT(4%/12,2*12,40000,0,0) This function returns 1,737.00. This is your installment amount.

6. QUESTIONS IN SPREADSHEET IPMT (Interest payment) function can be used to find the interest part of a payment based on periodic, constant payments and a constant interest rate.. PPMT (Principal payment) function can be used to find the principal part of a Payment based on periodic, constant payments and a constant interest rate.. These two functions are useful when you need to determine the interest/principal breakdown of a particular payment. Also PMT = IPMT + PPMT The syntax of the two functions are as follows: IPMT(rate, per, nper, pv, fv,type) PPMT(rate, per, nper, pv, fv,type)

7. QUESTIONS IN SPREADSHEET NPV() : Calculates the net present value of an investment by using a discount rate and a series of future payments (negative values) and income (positive values). Syntax NPV(rate,value1,value2,...) e.g. =NPV(10%,-10000,3000,4200,6800) gives Rs 1,188.44

8. QUESTIONS IN SPREADSHEET

12. Explain the use of the following functions i. FV () ii. ABS () iii. MAX () iv. PMT () v.FLOOR ()

13. QUESTIONS IN SPREADSHEET Q) Explain what are Sub-totals. Q) What is a Pivot table? Q) Explain Relative, Absolute and Mixed cell references.

14. QUESTIONS IN SPREADSHEET

15. Let us say you have taken a car loan of Rs 1, 00,000 from a bank. You have agreed to pay Rs 2700 at the end of each month for next 5 years. The bank interest is 12% P.A. write down the procedure to find out the present value.

16. QUESTIONS IN SPREADSHEET

21. Cost of machinery is entered in cell A4, estimated life in years is 5 is entered in cell A6 this asset has no salvage value. Explain how you will create an EXCEL worksheet showing year, depreciation, and WDV use reducing balance method.

22. QUESTIONS IN SPREADSHEET