Microsoft Office Tutorials and References

In Depth Information

**DB**

year of the loan starts with 13 and ends with 24 (number in months). The type is 0 (payment

at the end of the period). The cumulative principal on the loan for the second year of the

mortgage is $2,097. You should note that both the interest rate and the number of periods

should be using the same unit of measurement. The example uses months.

The interest rate of the loan.

RATE

The number of payment periods.

NPER

The present value of the loan.

PV

The first payment period. Payment periods start with one.

START_PERIOD

The last period in the calculation.

END_PERIOD

The payment timing.

TYPE

Figure 6.12

CUMPRINC
returns the

cumulative principal

amount between start

and stop dates on a

loan or mortgage.

A

The function that

results from cell

referencing

DB

DB
returns the asset depreciation for a period using the fixed declining balance method.

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

Let’s say you purchase a machine that cost $900,000, and has a lifespan of 5 years. The salvage

value is $100,000. Figure 6.13 shows the depreciation over 5 years using the
DB
function.

Asset’s initial cost.

COST

The value at the end of the depreciation.

SALVAGE

The number of periods over which to depreciate the asset.

LIFE

The period over which the depreciation is calculated. The period must

use the same number as
Life
.

PERIOD

The number of months in the first year. If omitted, Excel assumes 12.

MONTH