Financial Solutions | Microsoft Excel

spreadsheet professional excel financial planning and budgets south africa

spreadsheet professional excel financial planing and budgets south africa

Financial Solutions

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Determining financial solutions using Excel

No matter what the size of your business, all businesses require financial solutions and financial projections. Many businesses are struggling to determine these things manually but with the financial functions in Excel, financial projections problems are no longer something to worry about.

Financial projections

As part of financial projections there are many aspects that can be covered but luckily Excel has many functions that can satisfy a variety of financial projections needs including rates, net present value and a host of other functions. Let us take a look at basic financial projections functions in Excel:

RATE:
- This function calculates the interest rate generated by an annuity. It will be found under rate and with the assistance of the function wizard you will easily and quickly be able to determine the interest rate.
- To determine this value for use in your financial projections you will be required to enter the following values:
- Number of payment periods
- Payment amount
- Present value: the outstanding amount on the loan
CUMIPMT and CUMPRINC:
- This is one of the financial projections functions that allows you to calculate the interest paid and principle paid over a period without having to generate an amortization table.
- To determine this value for use in your financial projections you will be required to enter the following values:
- Interest rate
- Number of payment periods Present value: the outstanding amoun
- t on the loan
- Start period
- End period
PMT:
- This function is used to calculate what repayments are required to fully amortize a loan (pay off a loan).
- To determine this value for use in your financial projections you will be required to enter the following values:
- Interest rate
- Number of payment periods
- Present value: the outstanding amount on the loan
CAGR:
- Calculating the Compound Annual Growth Rate using the RATE function.
- To determine this value for use in your financial projections you will be required the same values as for the RATE function above.
NPV:
- Net present value of a series of cash flows
- To determine this value for use in your financial projections you will be required to enter the following values:
- Rate of discount over length of one period
- Values; of payments or income, equally spaced in time and at the end of a period
IRR:
- Determines the internal rate of return of a series of cash flows.
- To determine this value for use in your financial projections you will be required to enter the following values:
- Values of the cells which contain the numbers for which you want to determine the IRR
- Guess
- Always remember that for this function you are required to have one negative and one positive number in your series of values.

Miricle Solutions is a company that provides Excel training specifically aimed at businesses to ensure that they make optimum use of the product and in doing so save millions. Contact Miricle Solutions today or browse www.auditexcel.co.za to get a sneak preview of what you might learn include functions for financial projections.