MS-Excel-Financial-Functions - MS-Excel Financial Functions...

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MS-Excel Financial Functions, Related to Interest Factor Formulas in MSci 261 From MS-Excel Help, for the functions PV, PMT, FV, RATE, or NPER, the following equation is solved for one of these values, given the other values. pv* (1 + rate ) nper + pmt (1 + rate* type )* 0 1 ) 1 ( = + + fv rate rate nper Translated into the symbols of the textbook, P = pv , A = pmt , F = fv , i = rate , N = nper and with type =0 , the equation is: 0 1 ) 1 ( ) 1 ( = + + + + F i i A i P N N , or, using interest factor symbols P ( F/P,i,N ) + A ( F/A,i,N ) + F = 0. Let’s look at the case when F =0. Suppose we know the values for A, i and N , and we want to find an equivalent value for P , using MS-Excel. Then select the PV function (it will return a value of pv = P ), and supply the known values for A, i and N in the proper positions in the argument list (see MS-Excel help for the order of the arguments). (You can leave out the last two arguments, which are for F and type ; by leaving them out, MS-Excel assumes that these
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This note was uploaded on 05/17/2011 for the course MSCI 261 taught by Professor Bonkoo during the Spring '09 term at Waterloo.

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MS-Excel-Financial-Functions - MS-Excel Financial Functions...

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