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Financialfunctionofexcel 150130110157 Conversion Gate01

The document outlines various financial functions in Excel such as PMT, PPMT, IPMT, PV, FV, RATE, and NPER, which are used for loan calculations. It provides a step-by-step guide on how to input data and formulas in Excel to calculate loan payments, principal, interest, future value, and total cost. The example concludes with the total cost of a specific motorcycle after applying these calculations.

Uploaded by

kishore
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We take content rights seriously. If you suspect this is your content, claim it here.
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14 views28 pages

Financialfunctionofexcel 150130110157 Conversion Gate01

The document outlines various financial functions in Excel such as PMT, PPMT, IPMT, PV, FV, RATE, and NPER, which are used for loan calculations. It provides a step-by-step guide on how to input data and formulas in Excel to calculate loan payments, principal, interest, future value, and total cost. The example concludes with the total cost of a specific motorcycle after applying these calculations.

Uploaded by

kishore
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

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

Rate of
Year 2 interest
8%

emi principal interest Future value

cost
• In keyboard press WinWord + R
• Enter excel
1 • Press enter

• In excel
• Enter bike price in A1 & B1
2 • Enter down payment in A2 & B2

• Enter loan amt


• In B3 enter a formula (=bike price B1- down payment B2)
3 • Press enter
2

3
• Enter in A4 ROI & amt in B4
4 • Enter in A5 year

ROI

year
• In A6 enter EMI
• In B6 enter =pmt()
5 • Press ctrl+A

6 • Function arguments box open


• In RATE select ROI / 12
• In NPER select YEAR *12
7 • In PV select loan amount (for positive result before pv enter
-)
Press enter
we get
EMI
• In A7 enter principal
• In B7 enter formula =PPMT()
• Press ctrl+A (FUNCTION ARGUMENTS)
• In RATE select ROI /12
8 • In PER enter 1
• In NPER select YEAR *12
• In PV select LOAN AMOUNT (in negative)
Press enter we
get

PRINCIPAL
• In A8 enter interest
• In B8 enter formula =IPMT()
• Press ctrl+A (function argument)
• In RATE select ROI /12

9 • 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
• In A9 enter FUTURE AMOUNT
• In B9 enter formula =FV()
• Press ctrl+A (function argument )
• In RATE select ROI /12

10 •
•
In NPER selcet YEAR *12
Int PMT select EMI value (cell) (in negetive)
Press enter
we get
FUTURE
VALUE
• In A10 enter COST
• In B10 enter =B2(DOWN
11 PAYMENT)+B9(FUTURE VALUE)
Press enter
we get

COST
So , Actual amount of this

ROYAL ENFIELD CLASSIC


DESERT STORM
1,68,522.59/-

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