FORMULAS

[DOUSE1]

I WANT TO USE THE FUNCTION ICON TO DISPLAY ANSWERS FOR
QUESTIONS PERTAINING TO Present Value of an Ordinary
Annuity, FUTURE VALUE OF AN ANNUITY OR ANNUITY DUE,
PRESENT VALUE OF A SERIAL PAYMENT, mainly functions that
i have used on the HP 10B calculator.

My question is are their any formulas set up in excel
that can display the answere to these questions. I do
see icons for "PMT, PV, and FV" but not the others.
please help.

thanks

Douse1

 

[RK]

On the menubar, click Insert / Function and then in "Category" select
Financial. Look at the PV and FV functions. For both these functions, TYPE =
0 for an ordinary annuity and 1 for an annuity due.

 

[Norman Harker]

Hi Douse1!

Present value of an ordinary annuity
=PV(5%,10,10000,0,0) -$77,217.35


Present value of an annuity due:
=PV(5%,10,10000,0,1) -$81,078.22


Future value of an annuity:
=FV(5%,10,10000,0,0) -$125,778.93


Future value of an annuity due:
=FV(5%,10,10000,0,1) -$132,067.87


The Type argument is Excel financial functions PV, FV, PMT, NPER, and
RATE are the erquivalent of the Begin / End button on your trusty HP
10B

The big difficulty that you'll have with switching from Financial
Calculator to Excel (or any other spreadsheet) is that the NPV
function of your Financial Calculator assumes that the first cash flow
is a the origin point 0. With Excel, the first cash flow in the range
is assumed to be received at the end of period one. It's basic
financial maths that you'll need to do the correction.

--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
Excel and Word Function Lists (Classifications, Syntax and Arguments)
available free to good homes.