Financial function of excel

FINANCIAL FUNCTION

OF

EXCEL

• PMT : payment made in a particular period

• PPMT: used to find out the principal amount

within an instalment of loan

• IPMT: used to find out interest amount within

an instalment of a loan

• PV: present value , it is the initial amount of

loan being taken or amount borrowed

• FV : future value of an investment

• RATE :the interest rate per period

• NPER : total number of payments periods

• PER : particular period

• FV : payment made each period

• TYPE : indicates when payment are due either

0 or 1

• PMT : payment made in a particular period

Price

1,54000

Price Down payment

Loan amount

Loan

amount

84000

Year 2

principal Future value

cost

Rate of

interest

8%

emiinterest

1

• In keyboard press WinWord + R

• Enter excel

• Press enter

2

• In excel

• Enter bike price in A1 & B1

• Enter down payment in A2 & B2

3

• Enter loan amt

• In B3 enter a formula (=bike price B1- down payment B2)

• Press enter

2

3

4

• Enter in A4 ROI & amt in B4

• Enter in A5 year

ROI

year

5

• In A6 enter EMI

• In B6 enter =pmt()

• Press ctrl+A

6 • Function arguments box open

7

• In RATE select ROI / 12

• In NPER select YEAR *12

• In PV select loan amount (for positive result before pv enter - )

Press enter

we get

EMI

8

• In A7 enter principal

• In B7 enter formula =PPMT()

• Press ctrl+A (FUNCTION ARGUMENTS)

• In RATE select ROI /12

• In PER enter 1

• In NPER select YEAR *12

• In PV select LOAN AMOUNT (in negative)

Press enter we

get

PRINCIPAL

9

• In A8 enter interest

• In B8 enter formula =IPMT()

• Press ctrl+A (function argument)

• In RATE select ROI /12

• In PER enter 1

• In NPER select YEAR *12

• In PV select LOAN AMOUNT (in negative to get positive result )

Press enter we

get

INTEREST

10

• In A9 enter FUTURE AMOUNT

• In B9 enter formula =FV()

• Press ctrl+A (function argument )

• In RATE select ROI /12

• In NPER selcet YEAR *12

• Int PMT select EMI value (cell) (in negetive)

Press enter

we get

FUTURE

VALUE

11

• In A10 enter COST

• In B10 enter =B2(DOWN PAYMENT)+B9(FUTURE VALUE)

Press enter

we get

COST

So , Actual amount of this

ROYAL ENFIELD CLASSIC DESERT STORM1,68,522.59/-