Microsoft Office Tutorials and References
In Depth Information
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.
The number of payment periods.
The present value of the loan.
The first payment period. Payment periods start with one.
The last period in the calculation.
The payment timing.
CUMPRINC returns the
amount between start
and stop dates on a
loan or mortgage.
The function that
results from cell
DB returns the asset depreciation for a period using the fixed declining balance method.
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.
The value at the end of the depreciation.
The number of periods over which to depreciate the asset.
The period over which the depreciation is calculated. The period must
use the same number as Life .
The number of months in the first year. If omitted, Excel assumes 12.