List and briefly describe the financial functions used for loans and investments in Excel.?

Question

What will be an ideal response?

Answer 1

?Answers will vary. A financial function is a function related to monetary calculations, such as loans and payments. Some of Excel's financial functions that are often used to develop budgets are listed below:?FV(rate,nper,pmt[,pv=0][,type=0])-calculates the future value of an investment, where rate is the interest rate per period, nper is the total number of periods, pmt is the payment in each period, pv is the present value of the investment, and type indicates whether payments should be made at the end of the period (0) or the beginning of the period (1).?PMT(rate,nper,pv[,fv=0][,type=0])-calculates the payments required each period on a loan or investment, where fv is the future value of the investment.?IPMT(rate,per,nper,pv[,fv=0][,type=0])-calculates the amount of a loan payment devoted to paying the loan interest, where per is the number of the payment period.?PPMT(rate,per,nper,pv[,fv=0][,type=0])-calculates the amount of a loan payment devoted to repaying the principal of a loan.?PV(rate,nperpmt[,fv=0][,type=0])-calculates the present value of a loan or investment based on periodic, constant payments.?NPER(rate,pmt,pv[,fv=0][,type=0])-calculates the number of periods required to repay a loan or investment.?RATE(nper,pmt,pv[,fv=0][,type=0])-calculates the interest rate of a loan or investment based on periodic, constant payments. Please see the section "Working with the PMT Financial Function" for more information.