This tutorial shows us how powerful Excel can be for making business decisioins. It can help you to figure out the following things for example:
- How much you would need to spend on monthly payments such as mortgage or car payments.
- How much you would need to save in order to accumulate a specific amount by a certain point in time.
- How much of a down payment you would need to make, for monthly payments to equal a particular amount.
- How much you would gain over time on a specific amount of savings.
It explains also how to use the 'basic' financial formulas of Excel like:
- PMT
- NPER
- PV
- FV
I think that they should have mentioned also the RATE function in the tutorial. With these formulas you can find the answers to the above and to so many other business related questions. We also learnt in class that by conditional formatting it is also possible to automatically indicate the result/value that we are looking for.
We made a Loan Payment Calculator, Interest Table, and Amortization Table by just using 2 of these formulas. So you can imagine how important it is to know how to use these formulas.
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