Question

I am looking for some Excel function and formulas most popular used in finance to solve the finance problems. Could you help me with this?

Please lists the functions and how to use it immediately, I was bad at handle the excel function

Answer 1

1. Future Value (FV): FV (Rate, Nper, [Pmt], PV, [Type])

2. FVSCHEDULE: FVSCHEDULE(Principal, Schedule)

3. Present Value (PV) : PV(Rate, Nper, [Pmt], FV, [Type])

4. Net Present Value (NPV): NPV(Rate, Value 1, [Value 2], [Value 3]…)

5. XNPV: XNPV(Rate, Values, Dates)

6. PMT : PMT(Rate, Nper, PV, [FV], [Type])

PMT denotes the periodical payment required to pay off for a particular period of time with a constant interest rate.

7. PPMT : PPMT(Rate, Per, Nper, PV, [FV], [Type])

It is another version of PMT. The only difference is this – PPMT calculates payment on principal with a constant interest rate and constant periodic payments

8. Internal Rate of Return (IRR): IRR(Values, [Guess])

9. Modified Internal Rate of Return (MIRR): MIRR(Values, Finance rate, Reinvestment rate

10.XIRR : XIRR(Values, Dates, [Guess])

Here we need to find out IRR which has specific dates of cash flow. That’s the only difference between IRR and XIRR.

11. NPER : NPER(Rate, PMT, PV, [FV], [Type])

It is simply the number of periods one requires to pay off the loan.

12. RATE : RATE(NPER, PMT, PV, [FV], [Type], [Guess])

  Through the RATE function, we can calculate the interest rate needed to pay off the loan in full for a given period of time.

13. EFFECT : EFFECT(Nominal_Rate, NPERY)

Through the EFFECT function, we can understand the effective annual interest rate. When we have the nominal interest rate and the number of compounding per year, it becomes easy to find out the effective rate.

14. NOMINAL: NOMINAL(Effect_Rate, NPERY)

When we have an effective annual rate and the number of compounding periods per year, we can calculate the NOMINAL rate for the year.

15. SLN: SLN(Cost, Salvage, Life)

  Through the SLN function, we can calculate depreciation via a straight-line method.