Microsoft Excel -- Quick Reckoner for Financial Calculations
Most of us would have encountered piquant situations while planning to avail personal loans from financial institutions. While the bank gives a full details of the loan, the amortization schedules etc, it would be better that we also have hand-calculate and cross verify the details. The calculation process is not simple and particularly assumes mammoth complexities in the case of long term loans.
Fortunately, there is a simple but generic tool that lies very much within Microsoft Excel to help ease out this situation and greatly help us.
- Amotization Schedule
- Launch Microsoft Excel.
- Right click on the bottom tab 'Sheet 1'.
- Click on the tab 'Spreadsheet Solutions'.
- You can now select 'Amortization Schedule'.
- Fill out the steps and Microsoft Excel would calculate the rest.
- Principal Component in EMI
- Launch Microsoft Excel and from Insert -> Function, choose the category 'Financial'
- Choose 'PPMT' as the function name.
- Fill out the fields.
- Instead of PPMT, if you can choose IPMT, you can get the Interest component of the loan.
I hope this would be of tremendous significance to any user before availing a loan from any financial institution.