Jan 1, 2012


MS Excel Financial Function is very helpful to calculate No of Installment (NPER), Present Value (PV) of any future cash flows, Future Value (FV), Amount per Installment given or receive (PMT), Net Present Value (NPV) of any project, Rate of Interest etc.
These types of financial measurement is very important for managerial decision making process, finance decision making process, accounts department and more.

First Installment Amount (PMT) is calculating. Example is mentioned under:-

Say, Mr X, retired employee, gets pension $10,000. Present value $1,036,246.19 Get pension for 20 years. Rate of Interest:- 10% pa. Calculate PMT

Answer:-
VIEW PICTURE AND SOLUTION (click on picture to view full size)
or VIEW UNDER MENTIONED VIDEO TUTORIAL


Pension Amount = ?
Rate of Interest = 10% Per Year
No of Installment = 240 20 years & 12 months each
Present Value = $1,036,246.19

PMT(Monthly Pay) = ($10,000.00) (calculated)

In 2003 Excel:- Insert Menu -- Function -- Select Financial -- Select PMT -- Ok -- PV:- ($1,036,246.19), NPER:- 240, Rate:- 10%/12, FV:- $15,187,376.74

In 2007 Excel:- Formula Menu --> Financial --> PMT -->
PV:- ($1,036,246.19), NPER:- 240, Rate:- 10%/12, FV:- $15,187,376.74
NEGATIVE PMT VALUE CALCULATE



MS Excel Financial Function is very helpful to calculate No of Installment (NPER), Present Value (PV) of any future cash flows, Future Value (FV), Amount per Installment given or receive (PMT), Net Present Value (NPV) of any project, Rate of Interest etc.
These types of financial measurement is very important for managerial decision making process, finance decision making process, accounts department and more.

First Future Value (FV) is calculating. Example is mentioned under:-

Say, Mr X, retired employee, gets pension $10,000. Present value $1,036,246.19
Get pension for 20 years. Rate of Interest:- 10% pa. Calculate Future Value

Answer:-
VIEW PICTURE AND SOLUTION (click on picture to view full size)
or VIEW UNDER MENTIONED VIDEO TUTORIAL


Pension Amount = ($10,000.00) Per Month (put negative value)
Rate of Interest = 10% Per Year
No of Installment = 240 20 years & 12 months each
Present Value = ($1,036,246.19)

Future Value(FV) = $15,187,376.74 (calculated)

In 2003 Excel:- Insert Menu --> Function --> Select Financial --> Select FV --> Ok -->
PMT:- ($10000.00), PV:- ($1,036,246.19), NPER:- 240, Rate:- 10%/12

In 2007 Excel:- Formula Menu --> Financial --> FV -->
PMT:- ($10000.00), PV:- ($1,036,246.19), NPER:- 240, Rate:- 10%/12
Always Put Negative PMT and PV



MS Excel Financial Function is very helpful to calculate No of Installment (NPER), Present Value (PV) of any future cash flows, Future Value (FV), Amount per Installment given or receive (PMT), Net Present Value (NPV) of any project, Rate of Interest etc.
These types of financial measurement is very important for managerial decision making process, finance decision making process, accounts department and more.

First Rate of Interest is calculating. Example is mentioned under:-

Say, Mr X, retired employee, gets pension $10,000. Present value $1,036,246.19. Get pension for 20 years. Calculate Rate of Interest


Answer:-
VIEW PICTURE AND SOLUTION (click on picture to view full size)
or VIEW UNDER MENTIONED VIDEO TUTORIAL


Pension Amount = ($10,000.00) Per Month (put negative value)
Rate of Interest = ? Per Year
No of Installment = 240 20 years & 12 months each
Present Value = $1,036,246.19

Rate of Interest = 10.00% (calculated)

In 2003 Excel:- Insert Menu -- Function -- Select Financial -- Select RATE -- Ok --
PMT:- ($10000.00), PV:- $1,036,246.19, NPER:- 240

In 2007 Excel:- Formula Menu -- Financial -- RATE --
PMT:- ($10000.00), PV:- $1,036,246.19, NPER:- 240
Always Put Negative PMT i.e. Loan or Pension Amount etc


MS Excel Financial Function is very helpful to calculate No of Installment (NPER), Present Value (PV) of any future cash flows, Future Value (FV), Amount per Installment given or receive (PMT), Net Present Value (NPV) of any project, Rate of Interest etc.
These types of financial measurement is very important for managerial decision making process, finance decision making process, accounts department and more.

Now No of Installment (NPER) is calculating. Example is mentioned under:-

Mr X, retired employee, gets pension $10,000. Present value $1,036,246.19 Rate of interest 10% p.a., CALCULATE No of Installment

Answer:-
VIEW PICTURE AND SOLUTION (click on picture to view full size)
or VIEW UNDER MENTIONED VIDEO TUTORIAL



Pension Amount = ($10,000.00) Per Month (put negative value)
Rate of Interest = 10% Per Year
No of Installment = ?
Present Value = $1,036,246.19

No of Installment = 240 (calculated)

In 2003 Excel:- Insert Menu -- Function -- Select Financial -- Select NPER -- Ok --
Rate:- 10%/12, PMT:- ($10000.00), PV:- $1,036,246.19

In 2007 Excel:- Formula Menu -- Financial -- NPER --
Rate:- 10%/12, PMT:- ($10000.00), PV:- $1,036,246.19
Always Put Negative PMT i.e. Loan or Pension Amount etc



MS Excel Financial Function is very helpful to calculate No of Installment (NPER), Present Value (PV) of any future cash flows, Future Value (FV), Amount per Installment given or receive (PMT), Net Present Value (NPV) of any project, Rate of Interest etc.
These types of financial measurement is very important for managerial decision making process, finance decision making process, accounts department and more.

First Present Value (PV) is calculating. Example is mentioned under:-

Say, Mr X, retired employee, gets pension $10,000 at the end of each month for 20 years. Rate of interest 10% p.a., CALCULATE PV (Present Value)

Answer:-
VIEW PICTURE AND SOLUTION (click on picture to view full size)
or VIEW UNDER MENTIONED VIDEO TUTORIAL


Pension Amount =($10,000.00) Per Month (put negative value)
Rate of Interest =% Per Year
No of Installment = i.e. 20 years & 12 months each year
Present Value = ?

Present Value(PV) = $7,593,688.36 (calculated)(view picture)

In 2003 Excel:- Insert Menu -- Function -- Select Financial -- Select PV -- Ok -- Rate:- 10%/12, PMT:- ($10000.00), NPER:- 204

In 2007 Excel:- Formula Menu -- Financial -- PV --
Rate:- 10%/12, PMT:- ($10000.00), NPER:- 204
Always Put Negative PMT i.e. Loan or Pension Amount etc

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