Excel Chapter 4 – Flashcards
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Financial Functions
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Predefined formulas that perform common business calculations, and which typically involve a period of time such as months or years.
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Interest
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The amount charged for the use of borrowed money.
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Rate
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In the Excel PMT function, the term used to indicate the interest rate for a loan.
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Present Value (PV)
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The total amount that a series of future payments is worth now.
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Principal
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Another term for present value
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Nper
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The abbreviation for number of time periods in various Excel functions.
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Future Value (FV)
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The value at the end of the time periods in an Excel functions; the cash balance you want to attain after the last payment is made-usually zero for loans.
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Arguments
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The values that an Excel function uses to perform calculations or operations.
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PMT Functions
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An Excel function that calculates the payment for a loan based on constant payments and at a constant interest rate.
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Type Argument
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An optional argument in the PMT function that assumes that the payment will be made at the end of each period.
