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 ...