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Introduction to Excel

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Introduction to Excel

  1. 1. Introduction toSpreadsheets
  2. 2. What is EXCEL ??• Excel is a spreadsheet program in the Microsoft Office system. You can use Excel to create and format workbooks (a collection of spreadsheets) in order to analyze data and make more informed business decisions.• Specifically, you can use Excel to track data, build models for analyzing data, write formulas to perform calculations on that data, pivot the data in numerous ways, and present data in a variety of professional looking charts.
  3. 3. Financial FunctionsCalculate the monthly payment on a Rs.5,000 loan atan annual rate of 7.5%. The loan is paid off in 2 years(ie: 2 x 12). All payments are made at the beginning ofthe period. =PMT(7.5%/12, 2*12, 5000, 0, 1)
  4. 4. Calculate the weekly payment on a Rs.8,000 loan atan annual rate of 6%. The loan is paid off in 4 years (ie:4 x 52). All payments are made at the end of theperiod. =PMT(6%/52, 4*52, 8000, 0, 0)
  5. 5. PV FunctionPV function returns the present value of an investment based onan interest rate and a constant payment schedule.• The syntax for the PV function is:PV( interest_rate, number_payments, payment, [FV], [Type] )interest_rate is the interest rate for the investment.number_payments is the number of payments for the annuity.payment is the amount of the payment made each period. If thisparameter is omitted, you must enter a FV value.FV is optional. It is the future value of the payments. If thisparameter is omitted, the PV function assumes FV to be 0.Type is optional. It indicates when the payments aredue. Type can be one of the following values:
  6. 6. Examples• Calculate the present value of an investment that pays Rs.250 at the end of every month for 2 years. The money paid out will earn 7.5% annually. =PV(7.5%/12, 2*12, 250, , 0)• Calculate the present value of an investment that pays Rs.50 at the beginning of every week for 4 years. The money paid out will earn 6% annually. =PV(6%/52, 4*52, 50, , 1)
  7. 7. Thank You

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