Time value of money calculations are complex, right? Typically, you need to use a financial calculator to find the answers you're looking for... why not just use Excel? Create a template for all the scenarios you usually calculate. Checkout this first example a home loan to get your feet wet.
Text00:40 Calculating the payment amount of a loan is no easy task. It takes quite a bit of pencil work. Luckily, we have Excel and can use the built-in PMT() function. All this function needs is the present value, rate, and number of loan payments. One thing to watch out for is that all of your inputs need to reflect the same period of time.
04:15 The financial formula PV() is used to find the "P"resent "V"alue of a number - typically an investment. Take a peek at this segment to get a better understanding of how it works.
05:35 The financial formula Rate() is used to find the percentage RATE on a loan or investment. Take a peek at this segment to get a better understanding of how it works.
06:27 The financial formula NPER() is used to find the "N"umber of payment "PER"iods on a loan or investment. Take a peek at this segment to get a better understanding of how it works.
VideoGIF.png "PMT() - Calculate A Loan Payment - Calculate your monthly loan payment quickly with the PMT() function.")
.gif)
.png "PV() - Find the Present Value - Calculate the present value of an investment or loan with the PV() function.")
.gif)
.png "Rate() - What's The Interest Rate? - Calculate the interest rate of a loan using the Rate() function.")
.gif)
.png "NPER() - How Many Loan Payments? - Calculate the number of loan payments you will need to send to be debt free!")
.gif)
Finance-Outlines-1.xlsx