Introduction to financial support tools in Excel

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Microsoft Excel has several advanced financial support functions which enable users to make complex calculations. Some of the financial support tools available in Excel are:

• Interest Rate
• Internal Rate of Return (IRR)
• Net Present Value
• Compound Annual Growth Rate (CAGR)
• Periodic Payment Function (PMT)
• CUMIPMT & CUMPRINC Functions.

A short overview of each the financial support functions of Excel are provided below:

Interest Rate (IR)

The function is used to calculate the interest rate annually.

Internal Rate of Return (IRR) function

It is used for the calculation of the internal rate of return of a series of cash flows.

Net Present Value (NPV) function

The function is used to calculate the Net Present Value of a series of cash flows.

Compound Annual Growth Rate (CAGR) function

The function is used to calculate the compound annual growth rate.

Periodic Payment Function (PMT)

The function can be used to calculate the repayments necessary to fully amortise a loan.

CUMIPMT & CUMPRINC Functions

The above functions are used to calculate the net interest and principal interest paid over a specific period without the need for the generation of amortization tables.

If you want to learn how to use the above financial support functions available in Excel, click on the appropriate categories in our training section for easy to follow video clips and a free printable tutorial. In addition you can also book for one of our courses in Johannesburg where you will learn more about these functions through hands-on training.