course is for the expert user who
has good experience with Microsoft Excel or has completed the five
courses in our
Beginner Series plus Expert Level 1,
5 classes. This course will teach you how to work with
financial functions in Excel.
begin by learning about Excel's financial terms and functions including
PV (present value), FV (future value), PMT
(payment), RATE (interest rate), and NPER (number of
periods). You will learn about APR (annual percentage rate) and
simple vs. compound interest.
Next you'll build a loan calculator
where you will use the PMT function to determine the monthly
payment for a loan (home mortgage, car loan, etc.) knowing the value of
the loan, interest rate, and term of the loan (years). We will be able
to examine multiple scenarios by adjusting the variables to determine
the best loan for our needs.
In the next lesson, we'll build an
investment calculator. If you deposit money into an account and have
a set APR, we'll calculate how much money you'll have in your account
after so many years. We'll use the FV (future value) function for
Next we'll build an interest rate
calculator. If you know your initial deposit and the current value
of the investment, you can use the RATE function to calculate
your return on investment.
Next comes a fun project I like to call
the millionaire calculator. You can use this to determine how
long until you become a millionaire. Or, if you only want to save, say,
$500k for retirement, this spreadsheet will tell you how long it will
take. You input the initial deposit amount, the amount you're going to
pay into the account every month, your goal amount, and the interest
rate. The NPER function will tell you the number of periods
(months or years) until your goal is met. This is great for calculating
the time until you can retire.
Next comes the initial deposit
calculator. Knowing the current balance of an account, the interest
rate, and how long the account has been open, you can calculate what the
initial deposit was using the PV function.
Along the same lines, you can also use
the PV function to calculate how much house you can afford when
you go home shopping. If you know what monthly payment you can
afford, what your interest rate is going to be, and how many years you
want a mortgage for, the PV function can tell you how much house
you can afford to buy.
Next we'll learn how to build a loan
amortization schedule. We'll look at one of Microsoft's templates to
see a good example, and then we'll actually build our own so you
understand all of the functions involved. You'll learn about the IPMT
and PPMT functions which can calculate how much of a monthly
payment is interest and principal, respectively. You'll also use the
CUMPRINC and CUMIPMT functions to calculate interest and
principal between any two points in the loan.
Finally, we'll take a look at your
credit card statement. We'll use the NPER function to
determine how long it will take to pay off your credit card debt if you
just make the monthly minimum payments. Then, we'll use the
PMT function figure out how much you'll have to pay every month if
you want to pay off your debt in, say, 6 months, a year, or 3 years.
You'll see how much the credit card companies are REALLY making
off of you!
Again, this is the perfect class
for anyone who wants to learn how to work effectively with financial
functions in Microsoft Excel
course, if you have any questions about whether or not this class is
for you, please contact me.
Complete Outline - Excel
Expert Level 6
00. Intro (6:14)
01. Financial Terms (4:49)
PV, FV, PMT, RATE, NPER
APR (Annual Percentage Rate)
02. Loan Calculator (9:39)
Calculate Mortgage Payment
Compare Multiple Scenarios
03. Investment Calculator (5:03)
FV Future Value Function
Calculate Investment in 5 Years
04. Interest Rate Calculator (6:09)
What is your Return on Investment
Calculate interest rate
05. Millionaire Calculator (6:01)
How many years until goal reached
06. Initial Deposit Calculator (2:29)
What was the initial deposit?
07. Home Value Calculator (4:04)
How much house can I afford
Optional FV and TYPE parameters
08. Loan Amortization (12:10)
Microsoft's Amortization Template
Create your own amortization table
IPMT, PPMT functions
Cumulative interest and principal paid
09. Credit Card Payments (6:08)
How many payments at minimum
How long to pay off card debt
What payment to pay off in 6 months?
NPER and PMT
10. Review (4:44)
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