finance functions

Function:

ANNUITY

Function Name:

Annuity given present value

Syntax:

ANNUITY(present value, interest rate per period, number of periods)

Description:

Calculate an annuity amount given present value, interest rate per period, and number of periods. It is assumed that the first annuity payment is made at the end of the first period, not at the beginning.

Example Usage:

ANNUITY(1000, .05, 5)

Return Value:

380.40



Function:

ANNUITYFV

Function Name:

Annuity given future value

Syntax:

ANNUITYFV(future value, interest rate, number of payments)

Description:

Calculates an annuity amount given a future value, interest rate per period, and number of periods. It is assumed that the first annuity payment is made at the end of the first period, not at the beginning.

Example Usage:

ANNUITYFV(20000,0.00833,48)

Return Value:

340.61



Function:

DDBAMT

Function Name:

Double Declining Balance amount

Syntax:

DDBAMT(cost, life, period, salvage value)

Description:

Returns a depreciation amount using the Double Declining Balance (DDB) method, given an initial cost, asset life (in periods), the number of the current period for which the amount should be calculated, and a salvage value (frequently zero).

Example Usage:

DDBAMT(10000,5,2,0)

Return Value:

2400




Function:

FV

Function Name:

Future value

Syntax:

FV( present value, interest rate per period, number of periods)

Description:

Returns a future value of an amount, given a present value, an interest rate per period, and the number of periods.

Example Usage:

FV(1000, .083333, 48) -- Corresponds to 10% annual interest rate, compounded monthly, for 48 months.

Return Value:

1489.35




Function:

FVANNUITY

Function Name:

Future value of an annuity

Syntax:

FVANNUITY(annuity payment, interest rate, number of periods)

Description:

Returns the future value of an annuity given annuity payment, interest rate per annuity period, and the number of periods.

Example Usage:

FVANNUITY(200, .0083333, 36)

Return Value:

8356.359




Function:

NUMPMTS

Function Name:

Number of payments

Syntax:

NUMPMTS(present value, payment amount, interest rate per payment period)

Description:

Returns the number of payments given a present value, payment amount, and interest rate per payment period. Returns –1 if solution is infeasible, i.e., no number of payments will equal present value, given interest rate.

Example Usage:

NUMPMTS(10000,500, .0083333)

Return Value:

21.96961262



Function:

PV

Function Name:

Net present value

Syntax:

PV(future value, interest rate, number of periods)

Description:

Returns the net present value of a specified future value, given interest rate per period and number of periods.

Example Usage:

PV(10000, .0083333, 36)

Return Value:

7417.405862



Function:

PVANNUITY

Function Name:

Present value of an annuity

Syntax:

PVANNUITY(annuity amount, interest rate per period, number of periods)

Description:

Returns the present value of an annuity given the annuity amount, interest rate per period, and number of periods.

Example Usage:

PVANNUITY(100,.0083333,24)

Return Value:

2167.086350




Function:

STRLINEAMT

Function Name:

Straight-line depreciation amount

Syntax:

STRLINEAMT(cost, life, salvage value)

Description:

Returns a depreciation amount using the straight-line depreciation method, given an initial cost, asset life (in periods), and a salvage value (frequently zero). Because the straight-line depreciation amount is equal for each period in which depreciation is calculated, it is not necessary to specify which period is the current one.

Example Usage:

STRLINEAMT(50000,10,0)

Return Value:

5000



Function:

SYDAMT

Function Name:

Sum-of-the-years’-digits depreciation amount

Syntax:

SYDAMT(cost, life, period, salvage value)

Description:

Returns a depreciation amount using the sum-of-the-years’-digits (SYD) method, given an initial cost, asset life (in periods), the number of the current period for which the amount should be calculated, and a salvage value (frequently zero).

Example Usage:

SYDAMT(1000,5, 2, 0)

Return Value:

266.6666667