72
Appendix
Financial Calculation Formulas
TVM solver
PMT, PV, FV, N
Error
I/Y
If PMT = 0 then
If N = 1 then
If PMT
≠
0 or N
≠
1 then fi nd i using the fol-
lowing equations:
+
Error
i
≤
–1
Amortization calculations
Calculations
(for PV, PMT, and i, see the TVM solver)
END INT(1) = ROUND(–PV
×
i)
BGN INT(1) = 0
PRN(1) = –INT(1) + ROUND(PMT)
BAL(1) = PRN(1) + PV
INT(m) = ROUND(–BAL(m – 1)
×
i)
PRN(m) = –INT(m) + ROUND(PMT)
BAL(m) = PRN(m) + BAL(m – 1)
ROUND(NUM): If a display notation tab
setting has been chosen, NUM is rounded and
truncated to the specifi ed number of places
after the decimal point.
Results
Error
AMRT P1 > AMRT P2
Discounted cash fl ow
analysis
m
CF
where i =
RATE(I/Y)
100
, CFimax = the maxi-
mum data set number
IRR is obtained as i, which satisfi es NPV = 0
in the above equations.
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