Compound Interest Formula in Excel
Classically, known as “interest on interest”, compound interest is the most common type interest used in every day finance situations.
To calculate compound interest in Excel,
on principal amount P
at the rate of interest R
for the number of years N
and compounded T times per year
we can use the formula = P*(1+R/T)^(N*T)
In this article, understand how to calculate various kinds of compound interest values using Excel formulas.
Top 10 Accounting KPIs and How to Calculate them in Excel?
We can calculate any Finance & Accounting KPI values using Excel easily. In this article, I am sharing the top 10 accounting KPI calculations. These are… Topics ? Net Profit Margin Net Profit Margin = Net Profit / Sales Positive profit margin indicates business is profitable while negative indicates the business is in loss. ? […]
8 Reasons you must get better at Excel in 2015
This is a guest post by Sohail Anwar.
Why do so many of us use Excel? Let’s trace it back to the ’80s when Microsoft hit gold by being the first out of the blocks with the widely available operating system that was somewhat dummy proof.
Suddenly everyone could aspire to launch ‘Nukes’ like a fresh faced Matthew Broderick in the film ‘War Games’.
By the early 90’s Windows had become even more established relative to other Operating Systems, so much so that PC manufacturers were developing components around Windows’ capabilities and suddenly PCs were Windows machines. As big business began accepting the significance of computing, Microsoft started winning huge licensing contracts with all the major corporations in all sectors, but the Finance sector in particular, where Excel would be king, was having an exponential boom at this time. For big organisations, once you spent a fortune buying licences for the Operating System it only made sense to purchase the seamlessly integrated and carefully developed/tested apps to run on them; enter Excel, Word, PowerPoint and eventually Outlook. Fast forward to 2015 and we are firmly in the age of second generation corporate professionals who have developed much of their productivity skill sets around those particular Windows tools. While all the excellent tools have their place, Excel stands out and here are 8 reasons why you need to up your Excel game more than ever this year.
Dressing Financial Statements – What Motivated Mr. Bean to Defraud Latte?
Did you know What Happened at Last Coffee Day?
Mr. Bean “dressed up” the financial statements and was caught in the fraud. But he was the CEO of Latte! So why did he commit fraud in his own company??
Any Guess?
Take a cappuccino and I will give you a hint – How was Mr. Bean’s Bonus to be decided?
Read on to know more…
Financial Ratios – Cappuccino or Latte?
A Quick Question for you!
Don the hat of a financial wiz today. What I have for you are the financials of two companies: Cappuccino and Latte – Two dot com companies (Sometimes they also make revenues ;-))
Which is better – Cappuccino or Latte? ( Hint: It’s a trick question! 😉 )
It may seem obvious that Latte is performing better (Higher the revenue, the better the performance!). Sometimes a single source of data does not speak the full story!
Accumulated Depreciation using Mixed References
Last time we had discussed the use of SumProduct() to ease your life for calculation of consolidated revenues and depreciation. This time we would be using the sum function! Yes you heard it right – The Sum function.
But we would use the Sum function with a small trick! We would use it to calculate running cumulative sum! And believe me, you would need this function so many times – to calculate accumulated depreciation, cumulative debt, Profits to Retained Earnings and almost all the accounts that would consolidate into the balance sheet.
Mod() function in excel to Implement Escalation Frequency [Financial Modeling Tutorials]
You take an apartment on rent at $1000 per month and the owner puts an escalation clause saying 10% increment each 3 years. How do you model this in excel? In this tutorial we understand how escalations at certain frequency can be implemented using the mod function in excel. What is the mod() function Simply […]