lecture notes

Excel Financial functions

using John Walkenbach, Excel 2003 Formulas
Chapter 11
Not present in the 2007 book

PMT, FV, PV, RATE, NPER

Time value of money
FV = PV*(1 + RATE) ^ NPER

for one year:
FV = PV + PV * RATE
FV = PV * (1 + RATE)

if FV is PV for next year,
for subsequent year, mult by (1 + RATE)

FV = PV*(1 + RATE) ^ NPER
we can solve for PV

flow of money represented by a sign
money flowing towards me is positive
money flowing away from me is negative
answers:

=FV(7%, 3, 0, -1000)
=RATE(8, 0, -1000, 2000)
=NPER(14%, 0, -100000, 1000000)
=PV(1%, 12, 0, 10573.45)
=FV(1%, 24, -300, 0, 1)
=FV(7%, 3, 0, 1000)
=FV(0.75%, 36, -500, -5500, 0)

we finished problem #8

back to the Ifs
=(Subtotal+TaxAmt)* IF(Subtotal>B14, IF(Subtotal>B15, C15, C14), 0)

This is called Nesting
especially when we put one If inside of another If