Skip to content
Gallery
WGU: BS in IT
Introduction to IT D322
Principles of Management C483
Business of IT – Applications D336
Organizational Leadership - C484
Spreadsheets - C268
Web Development: Foundations - D276
User Interface Design C773
Web Development: Applications
Project Management - C324
Information Systems Management - C724
Data Management Foundations - D426
Share
Explore
Section 3: References & Calculations

icon picker
3.3 Financial Functions

Makiel [Muh-Keel]
Last edited 487 days ago by Makiel [Muh-Keel].

List of Financial Functions built-in to Excel

“[]” means the value is optional and doesn’t have to be put included in the function.

RATE (nper, pmt, pv, [fv], [type], [guess])

calculates the interest rate earned for an investment given the number of payments made as part of the investment, the payment amount, and the current value of the investment.

EFFECT (nominal_rate, npery)

The RATE and EFFECT functions help you understand how much interest you will be paying on a loan (or earning on an investment, if payments are being made to you instead of by you).
The nominal rate is the interest rate quoted on the loan.
The npery is the number of times per year that interest will be charged.
The RATE function requires three arguments: the number of payments to be made (nper), the amount of the payments (pmt), and the original amount, or present value, of the loan or investment (pv).
The RATE function will return the interest rate that is paid on the loan or investment described by the arguments.

NPER (rate, pmt, pv, [fv], [type])

The NPER function is used to calculate the number of payments made to a loan before it is paid off. The arguments for the NPER function are the interest rate charged on a loan (rate), the payment amount (pmt), and the original loan amount (pv).

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

The PMT function is used to calculate the payment amount for a loan. The arguments for the PMT function are the interest rate charged on the loan (rate), the number of payments made on the loan (nper), and the original loan amount (pv).

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

The PV function is used to calculate the current value for a loan or investment. The arguments for the PV function are the interest rate charged or earned on the investment (rate), the number of payments to be paid or earned (nper), and the payment amount (PMT).

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

The FV function is used to calculate the future value for a loan or investment after all of the payments are made or earned. The arguments for the FV function are the interest rate charged or earned on the investment (rate), the number of payments to be paid or earned (nper), and the payment amount (PMT).
⁠
image.png
⁠
⁠

List of Financial Functions built-in to Excel
RATE (nper, pmt, pv, [fv], [type], [guess])
EFFECT (nominal_rate, npery)
NPER (rate, pmt, pv, [fv], [type])
PMT (rate, nper, pv, [fv], [type])
PV (rate, nper, pmt, [fv], [type])
FV (rate, nper, pmt, [pv], [type])
Want to print your doc?
This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
CtrlP
) instead.