MICROSOFT EXCEL 2013

Financial

• FV() Returns the future value of an investment based on periodic, constant payments and a constant interest rate.
Syntax : FV(rate,nper,pmt,pv,type)
• Rate is the interest rate per period.
• Nper is the total number of payment periods in an annuity.
• Pmt is the payment made each period; it cannot change over the life of the annuity. Typically, pmt contains principal and interest but no other fees or taxes. If pmt is omitted, you must include the pv argument.
• Pv is the present value, or the lump-sum amount that a series of future payments is worth right now. If pv is omitted, it is assumed to be 0 (zero), and you must include the pmt argument.
• Type is the number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0.

Set type equal to	If payments are due
0	At the end of the period
1	At the beginning of the period


Ex: Calculate the feature value of monthly investment Rs.1000 about 5 years based on 9% yearly constant interest rate.



• PMT() Calculates the payment for a loan based on constant payments and a constant interest rate.


Syntax : PMT(rate,nper,pv,fv,type)

Rate is the interest rate for the loan.

Nper is the total number of payments for the loan.

Pv is the present value, or the total amount that a series of future payments is worth now; also known as the principal.

Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.

Type is the number 0 (zero) or 1 and indicates when payments are due.



Set type equal to	If payments are due
0 or omitted	At the end of the period
1	At the beginning of the period



Ex: Calculate Instalment amount per month of a loan Rs 200000 based on 12% yearly interest rate and you can payment at the beginning of every month about 6 years.