Going with the (Cash) Flow with Microsoft Excel

Copyright Rasmussen, Inc. 2011. Proprietary and Confidential.

Welcome to Lunch & LearnRasmussen College


Going with the (Cash) Flow with Microsoft ExcelKeitaro Matsuoka

• Eat• Background• Goals• Dilemma…• Quick Tips• Financial Applications• Add-ins• Q&A (File Location)

Agenda

Copyright Rasmussen, Inc. 2011. Proprietary and Confidential. 3

• Rasmussen College (www.rasmussen.edu)– Regionally accredited private college with 24

campuses and online.

• Foundation and Business Instructor, both residentially and online.

• Degrees in Applied Math and Finance.

Background


http://www.rasmussen.edu/

1. Learn the Tips You Can Use This Afternoon.2. Explore Excel’s Power to Make Your Life Easier.3. Experiment with Add-in Tools.

Goals Today


6

Dilemma



Let’s Get Started!


• Cut, Copy, Paste?• Undo your last action? Undo the undo?• Move to Cell A1? No clicking allowed!• Move to last cell in the range?• Toggle between displaying cell values and

formulas?• Quickly glance at which cells a formula uses?• Quickly enter today’s date?

Do You Know How To…


The Key is… the Shortcut Keys!

Keys ActionCtrl+Z Undo

Ctrl+Home Move to Cell A1Ctrl+End Move to Last Cell in Range

Alt+Enter * Start a New Line in the Same CellCtrl+; (Semicolon) Enter DateCtrl+` (Backtick) Alternate between Formula view

and Cell View

F2 * Glance at the Cells

* Bonus Tips!


Now On To (More) Serious Business


• Loan Payments• Amortization Schedule• Investments• Depreciation

Financial Applications


• PMT (payment)=PMT(rate, nper, pv, fv, type)

• PPMT (payment on principal)=PPMT(rate, per, nper, pv, fv, type)

• IPMT (payment on interest)=IPMT(rate, per, nper, pv, fv, type)

Payment Functions


• RATE (returns interest rate)=RATE(nper, pmt, pv, fv, type, guess)

• NPER (returns number of periods)=NPER(rate, pmt, pv, fv, type)

• PV and FV (present and future values)=PV(rate, nper, pmt, fv, type)

Other Functions


• Loan Amount• Interest Rate• Payment Periods• Periodic Payment Amount

Loan Payments


• You are buying a car for $30,000, paying over 4 years with an interest of 3.99%. How much would be your monthly payment?

• How much of the payment goes to principal and interest?

Loan Example


$677.24 a month!


• Loan Payments in More Detail.

Loan Amortization Schedule


Cumulative Amounts Displayed


• For fixed-rate interests, use FV.=FV(rate, nper, pmt, pv, type)

• For continuous compounding interests, use EXP (exponential).=EXP(rate)

Interest Calculations with FV and EXP


Monthly Compounding Example


Continuous Compounding Example


• Depreciation functions take the following arguments:– cost, salvage, life, period, start_period, end_period

Depreciation Calculations


• SLN– For single-line depreciation.– cost, salvage, life

• DB– Declining balance. Computed at a fixed rate.– cost, salvage, life, period

• DDB– Double-declining balance. Computed at an

accelerated rate.– cost, salvage, life, period

Depreciation Functions


• SYD– Returns Sum of Years’ Digits depreciation.– cost, salvage, life, period

• VDB– Variable declining balance.– cost, salvage, life, start_period, end_period

Depreciation Functions


Depreciation

0 1 2 3 4 5 6 7 8 9 10$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

Depreciation Calculation

SLN

DB

DDB

SYD

Year

Asse

t Val

ue


Add-in Tools


• ASAP Utilitieswww.asap-utilities.com

• Power Utility Pack (PUP)www.spreadsheetpage.com

• Office Tabwww.extendoffice.com

My Favorites

http://www.asap-utilities.com/

http://www.spreadsheetpage.com/

http://www.extendoffice.com/


One More Thing… (no, no iPod)


• Mr. Excel Message Boardwww.mrexcel.com/forum

• OzGridwww.ozgrid.com

• Jon Peltier (for Charting)www.peltiertech.com

• Google and YouTubewww.google.com, www.youtube.com

Web Resources

http://www.mrexcel.com/forum

http://www.ozgrid.com/

http://www.peltier.com/

http://www.google.com/

http://www.youtube.com/

http://peltiertech.com/index.html

[email protected] or (815) 306-2657

www.linkedin.com/in/keitaro

Questions?


Files will be in bit.ly/RasmussenMath.

mailto:[email protected]

http://www.linkedin.com/in/keitaro

https://plus.google.com/109424077248433930032

Going with the (Cash) Flow with Microsoft Excel

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