The PV, FV, NPER, RATE, and PMT functions in Excel can be used for both an ordinary annuity (payments made at the end of the period, type=0) and annuity due (payments made at the beginning of the period, type=1).
Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts
NPV Formula
To calculate Net Present Value using the NPV formula in Excel, you need a series of periodic cash flows like that shown in the figure below.
IRR Formula
To calculate Internal Rate of Return using the IRR formula in Excel, you need a series of periodic cash flows like that shown in the figure below.
Amortization Calculation
This article provides a basic explanation of how amortization works. The formula for calculating the periodic payment of a loan is given, along with a web-based calculator. The article also explains how to create an amortization table.
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