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Excel Financial Functions FV, PV, PMT, NPER, DB with Examples

Today we discuss in this post Excel Financial Functions FV, PV, PMT, NPER, DB etc. so please read carefully for better understanding. 

Excel Financial Functions FV, PV, PMT, NPER, DB with Examples


FV Function 

This function returns the future value of an investment.

Syntax

FV(rate,nper,pmt,pv,type)

Rate - Interest rate per period.

Nper - Total number of payment.

Pmt - Payment made each period.

Pv - Present value.

Type - Number 0 or 1 and indicates when payments are due.

Example - In figure.


Excel Financial Functions FV, PV, PMT, NPER, DB with Examples


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PV Function

This function returns the present value of an investment.

Syntax

PV(rate,nper,pmt,fv,type)

Rate -Interest rate per period.

Nper -Total number of payment .

Pmt - Payment made each period.

Fv-Future value.

Type- Number 0 or 1 and indicates when payments are due.

Example - In figure.

Excel Financial Functions FV, PV, PMT, NPER, DB with Examples


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PMT Function

This functions returns the periodic payment.

Syntax

PMT(rate,nper,pv,fv,type)

Rate - Interest rate for the loan.

Nper -Total number of payments for the loan.

Pv - Present value.

Fv - Future value.

Type - Number 0 or 1 and indicates when payments are due.

Example - In figure.

Excel Financial Functions FV, PV, PMT, NPER, DB with Examples



PPMT Function 

This function returns the payment on the principal for an investment for a given period

Syntax


PPMT(rate,per,nper,pv,fv,type)

Rate -Interest rate per period.

Per -Specifies the period and must be in the range 1 to nper.

Nper - Total number of payment periods in an annuity.

Pv - Present value.

Fv- Future value

Type-Number 0 or 1 and indicates when payments are due.

Example - In figure.

Excel Financial Functions FV, PV, PMT, NPER, DB with Examples



ISPMT Function

This function calculates the interest paid during a specific period of an investment.

Syntax

ISPMT(rate,per,nper,pv)

Rate -Interest rate for the investment.

Per-Period for which you want to find the interest.

Nper -Total number of payment periods for the investment.

Pv -Present value of the investment. 

Example - In figure.

This function returns the depreciation of an asset for a specified period by using the fixed-declining balance method.

Syntax

DB(cost,salvage,life,period,month)

Cost -Initial cost of the asset.

Salvage -Value at the end of the depreciation.

Life -Number of periods over which the asset is being depreciated .

Period - Period for which you want to calculate the depreciation.

Month-Number of months in the first year.

Example - In figure.

Excel Financial Functions FV, PV, PMT, NPER, DB with Examples



Conclusion 
I hope you understand Excel Financial Functions FV, PV, PMT, NPER, DB etc. If any questions and comments for this post please ask.  

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