Owner manual

Chapter 13 Additional Examples and Topics 351
Which Function Should You Use to Solve Common Financial
Questions?
This section describes some common questions you might want to address and lists
the nancial function that might be helpful. The questions help with everyday nancial
questions. More complex uses of the nancial functions are described in “Regular Cash
Flows and Time Intervals” on page 348, “Irregular Cash Flows and Time Intervals” on
page 350, and “Example of a Loan Amortization Table” on page 353.
If you would like to know This function may be helpful
Savings
The eective interest rate on an investment or
savings account that pays interest periodically
“EFFECT” (page 11 9 )
How much a CD will be worth at maturity “FV” (page 12 0 ). Note that payment will be 0.
The nominal rate of interest on a CD where the
issuer has advertised the “eective rate”
“NOMINAL” (page 129)
How many years it will take to save a specic
amount, given monthly deposits to a savings
account
“NPER” (page 13 0 ). Note that present-value will
be the amount deposited at the beginning and
could be 0.
How much to save each month to reach a savings
goal in a given number of years
“PMT” (page 134). Note that present-value will
be the amount deposited at the beginning and
could be 0.
Loans
The amount of interest paid on a loan during the
third year
“CUMIPMT” (page 110 )
The amount of principal paid on a loan during
the third year
“CUMPRINC” (page 11 2 )
The amount of interest included in the 36th loan
payment
“IPMT” (page 12 3 )
The amount of principal included in the 36th
loan payment
“PPMT” (page 13 5 )
Bond Investments
The amount of interest that will need to be
added to a bond’s purchase price
“ACCRINT” (page 99) or “ACCRINTM” (page 101)
The number of coupon payments between the
time a bond is purchased and its maturity
“COUPNUM” (page 109)
The annual discount rate for a bond that is sold
at a discount to its redemption value and pays no
interest (often known as a “zero coupon bond”)
“DISC” (page 117 )