Microsoft Excel 2010 In Depth

13. Using Financial Functions

Although the bulk of Excel’s financial functions are for professional financiers and investors, a few functions are useful for anyone planning to use a loan to purchase a car or house. The examples in this chapter represent a small subset of the calculations possible with Excel’s financial functions.

The following financial functions use new algorithms in Excel 2010:

CUMIPMT—Cumulative interest paid on a loan

CUMPRINC—Cumulative principal paid on a loan

IPMT—Interest payment for an investment

IRR—Internal rate of return for a series of cash flows

PMT—Payment for a loan

PPMT—Payment on principal for an investment

XIRR—Internal rate of return for a schedule of cash flows

The improved algorithms often affect only ...