Excel
Rate Calculations
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The Advantage of Excel
Microsoft Excel is an advanced tool that can save you and
your business numerous opportunities to save time and money.
The various functions and tools in Excel can present solutions
for many calculations from financial to basic arithmetic and
statistics. No matter what your need you can use all the features
of Excel to enhance your Excel experience. From Excel rate
calculations to time calculations and many other calculations
there is a solution, equation or formula in Excel to assist
you.
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Excel rate calculations can be used to assist with financial
calculations such as calculating your debt repayments, consolidating
debt and calculating repayments.
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The various Excel rate calculations available:
To activate the Excel rate calculations all you have to do is click
on the fx button on the Excel toolbar which will activate the Function
Wizard. A dialog box box will appear from which you can select from
certain categories; you will select the financial category. The
Excel rate calculations can perform various functions from calculating
the repayments required to amortize a loan, to calculating capital
annual growth rate.
- Excel rate calculations of Rate: these types
of calculations will enable you to calculate the interest rate
charged on a constant annuity cash flow. All that you are required
to know before commencing these Excel rate calculations is the
number of periods, the payment amount, the initial payment and
the final payment. If you use this payment to determine the compound
annual growth rate over a specified period of time you will simply
exclude the payment amount argument.
- Excel rate calculations of IRR: these calculations
determine the internal rate of return of a series of cash flows.
The important thing for you to remember when doing these Excel
rate calculations is that although the number values are not required
to be even, they are however required to be equally spaced in
time. For the IRR function to work you are required to have at
least one positive and one negative number, as well as take into
consideration that the first value you stipulate is determined
by Excel as period zero or the start of period one.
- Excel rate calculations of NPV: these calculations
determine the net present value of a series of cash flows. Unlike
the IRR function the first value that is stipulated is considered
to be period one and not zero. Therefore if you add in the capital
to your equation you will get an incorrect solution.
- Excel rate calculations of PMT: these calculations
are used to determine the repayments required to amortize a loan
determined according to the original loan amount and a constant
interest rate charged on the loan.
- Excel rate calculations of CUMIPMT and CUMPRINC: these
Excel rate calculations are used to determine the total interest
or capital paid between any two periods of time without the need
of drawing up an amortization table. The Cumulative Interest Payment
function and the Cumulative Principal payment function are very
useful tools in saving you time when determining a solution.
To learn how to use these Excel rate calculations and other useful
tools that Excel has to offer you can visit the Miricle Solutions
website at www.auditexcel.co.za to see the various training packages
available. Miricle Solutions is a company that has a strong financial
and Excel background that has merged the two to ensure that you
can easily use the tools such as the Excel rate calculations to
facilitate your day to day business. |
