A general question regarding Financials Formulas in Microsoft Exce
 

Hi, I've been told by a professor there are financial calculator formulas in
Excel, such as Future Value, Discount rate of return, and internal rate of
return. What I want to know is where I can go to learn how to use these
formulas in Excel.

Thanks

You can use the Help files.

Also, you may want to look at Peter Noneley's dictionary (somewhat dated) on
Ron de Bruin's site:

http://www.rondebruin.nl/files/xlfdic01.zip

--

Vasant


"Swhouston055" wrote in message
...
Hi, I've been told by a professor there are financial calculator formulas
in
Excel, such as Future Value, Discount rate of return, and internal rate of
return. What I want to know is where I can go to learn how to use these
formulas in Excel.

Thanks

The help files don't have answers for the questions I have, such as how to
find the present value of a bond when given the par value, the years to
maturity, the coupon interest rate and the discount rate of return.

Also, how can I discover the payment required monthly for a $20,000 college
education 4 years from now at 6 %, with an initial payment of $9000.00.

These are the sort of questions I'd like to see if Excel can solve.

The dictionary you listed was too dated.

Thanks

--
A full time student


"Vasant Nanavati" wrote:

You can use the Help files.

Also, you may want to look at Peter Noneley's dictionary (somewhat dated) on
Ron de Bruin's site:

http://www.rondebruin.nl/files/xlfdic01.zip

--

Vasant


"Swhouston055" wrote in message
...
Hi, I've been told by a professor there are financial calculator formulas
in
Excel, such as Future Value, Discount rate of return, and internal rate of
return. What I want to know is where I can go to learn how to use these
formulas in Excel.

Thanks

For the 1st problem, check out the NPV and XNPV functions, or the YIELD
function (in conjunction with Goal Seek)

For the 2nd problem, Excel has a payment (PMT) function.

On Tue, 4 Oct 2005 09:22:03 -0700, Swhouston055
wrote:

The help files don't have answers for the questions I have, such as how to
find the present value of a bond when given the par value, the years to
maturity, the coupon interest rate and the discount rate of return.

Also, how can I discover the payment required monthly for a $20,000 college
education 4 years from now at 6 %, with an initial payment of $9000.00.

These are the sort of questions I'd like to see if Excel can solve.

The dictionary you listed was too dated.

Thanks

Swhouston055 wrote...
The help files don't have answers for the questions I have, such as how to
find the present value of a bond when given the par value, the years to
maturity, the coupon interest rate and the discount rate of return.

Also, how can I discover the payment required monthly for a $20,000 college
education 4 years from now at 6 %, with an initial payment of $9000.00.

These are the sort of questions I'd like to see if Excel can solve.

The dictionary you listed was too dated.

Dated perhaps, but still current. No functions have been added to Excel
since 1997. Besides, Excel's financial functions have been included
with Excel since the mid 1980s, so from the time you were in diapers.
Wouldn't that mean you'd still have found what you needed if you'd
bothered to look.

Here's a piece of wisdom it may take you a lifetime to learn (or not):
the truth isn't always new.

As for your first two paragraphs, Excel does contain functions that can
solve both your sample problems, though the first one would require the
Analysis ToolPak add-in. The second only requires the PMT function.
Online help are skimpy on details, but they're sufficient for anyone
who knows the underlying theory of interest and financial math. If you
don't, then there are decent books available. Consider John
Walkenbach's 'Excel 2003 Formula'.

I think that the excel help is quite explanatory. In any case, the
functions you want are the PRICE function, and the PMT() function.

1) =PMT(.06,4,20,-9000,20000,0)

2) =PV(DSCR,MAT,COUPON,PAR,0)

so if DISC RAte is 10%, years to Mat= 10, coupon = 6 (6%), and par =100

then PV should give you 75.42%, which would be the price of the bond.

If you have the exact dates, and want a price according to market
conventions, use the price() function.


cheers


Swhouston055 wrote:
The help files don't have answers for the questions I have, such as how to
find the present value of a bond when given the par value, the years to
maturity, the coupon interest rate and the discount rate of return.

Also, how can I discover the payment required monthly for a $20,000 college
education 4 years from now at 6 %, with an initial payment of $9000.00.

These are the sort of questions I'd like to see if Excel can solve.

The dictionary you listed was too dated.

Thanks

--
A full time student


"Vasant Nanavati" wrote:

You can use the Help files.

Also, you may want to look at Peter Noneley's dictionary (somewhat dated) on
Ron de Bruin's site:

http://www.rondebruin.nl/files/xlfdic01.zip

--

Vasant


"Swhouston055" wrote in message
...
Hi, I've been told by a professor there are financial calculator formulas
in
Excel, such as Future Value, Discount rate of return, and internal rate of
return. What I want to know is where I can go to learn how to use these
formulas in Excel.

Thanks