Microsoft Office Tutorials and References

In Depth Information

**APPENDIX 1 - ALPHABETICAL FUNCTION REFERENCE**

PMT(rate,nper,pv,fv,type) [Category: Financial]

Calculates the payment for a loan based on constant payments and a constant

interest rate. Guru Tip: there are several gotchas in this function. The rate is

the percentage rate per period of the loan. So, while your car loan might have

a 5.25% interest rate, the monthly interest rate is 5.25%/12. Also, the present

value argument should be negative, as this is money coming out of the bank.

POISSON(x,mean,cumulative) [Category: Statistical]]

Returns the Poisson distribution. A common application of the Poisson distribution

is predicting the number of events over a speciļ¬ c time, such as the number of

cars arriving at a toll plaza in 1 minute.

POWER(number,power) [Category: Math]

Returns the result of a number raised to a power. Guru Tip: this function seems

irrelevant given the carat operator. =POWER(8,7) returns the same result as

=8^7.

PPMT(rate,per,nper,pv,fv,type) [Category: Financial]

Returns the payment on the principal for a given period for an investment based

on periodic, constant payments and a constant interest rate. Guru Tip: Column

C of the image for the ROW function is built using PPMT.