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Unformatted text preview: Total Number of Compounding Periods – NPER The total number of compounding periods of an investment or an annuity can be calculated using Excel's NPER function. See the table below for a detailed list of the exercises and problems in the text that can be solved using this function. Syntax =NPER(rate,payment,present value,future value,type) Rate – Interest rate Payment – periodic payments where individual amounts are the same Present Value – value of the investment today (0 if omitted) Future Value – value of the investment at end of term (0 if omitted) Type – when payment is to be made 0 – at end of period (assumed if left blank) 1 – at beginning of period General Example The following general example shows how the NPER function can be used. Notice that the NPER function appears in the formula bar. 1 Using the NPER Function in a Spreadsheet To calculate the total number of compounding periods of an investment or an annuity, create a spreadsheet by following Steps 1 to 7. Or, to use the NPER function right away, open the NPER worksheet in the Excel Functions Templates workbook file on the Spreadsheet Template Disk. All fields have been formatted for you (currency, percentage, number of decimals displayed). Step 1 : In cell A1 enter NPER Function. You will replace NPER Function with your project name when you use the spreadsheet for a particular question or situation. Step 2 : In cell A3 enter Interest Rate per Compounding Period . In cell A4 enter Payment Size . In cell A5 enter Present Value . In cell A6 enter Future Value . In cell A7 enter Type (Ordinary or Due) . In cell A8 enter Answer . Step 3 : Leave cells B3 to B7 empty. You will place values in these cells later. Step 4 : Select cell B8, and then click the Paste Function button fx on the Toolbar. In the Function Category list, click on All . In the Function Name list, click on NPER , then click OK ....
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 Fall '05
 TonyCirusolo
 Math, Time Value Of Money, Decimal, General Example

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