Mac Works 3.0: How to Adjust the Period of Financial Functions
  
PSS ID Number: Q102227
Article last modified on 10-22-1998
 
3.0
 
MACINTOSH
 

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3.00
MACINTOSH
kbother
 
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The information in this article applies to:
 
 - Microsoft Works for the Macintosh, version 3.0
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SUMMARY
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The compounded period used in calculating financial functions can be
altered by changing the number of periods over which the function is
calculated. For example, a four-year loan compounded monthly will have
48 periods (four years times 12 months). The rate should be entered as
the rate for each period.
 
To calculate a 9-percent annual interest rate, compounded monthly,
enter the monthly interest rate, which in this example is .75 percent
(9 percent divided by 12 months).
 
As an example, when calculating the future value of $10,000 four years
from now at an annual interest rate of 9 percent, the following
results are obtained:
 
   Compounded Period        Formula                      Result
   ------------------------------------------------------------
 
   yearly                   =FV(9%,4,0,-10000)            $14,115.82
   quarterly                =FV(9%/4,4*4,0,-10000)        $14,276.21
   monthly                  =FV(9%/12,4*12,0,-10000)      $14,314
   daily                    =FV(9%/365,4*365,0,-10000)    $14,332.66
 
MORE INFORMATION
================
 
This information regarding the number of periods is true for all of
the financial functions that take a percentage rate as an argument.
The following is a list of the functions:
 
   FV()
   IRR()
   MIRR()
   NPER()
   NPV()
   PMT()
   PV()
   RATE()
 
KBCategory: kbother
KBSubcategory: macworkskb
 
Additional reference words: 3.00  mac 3.00a mwksss M_eXcel
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Version           : 3.0
Platform          : MACINTOSH
Issue type        : kbhowto
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Copyright Microsoft Corporation 1998.