Financial functions
These functions can be accessed under the Definition menu Financial command, or in the Object Finder dialog, Financial library. The function names and parameters match those in Microsoft Excel, where they are equivalent. Of course, the Analytica versions support array abstraction, which makes them more flexible.
Parameters: The same parameters occur in many of the financial functions. These parameters are described here. Dollar amounts for both parameters and return values of functions are expressed as the amount you receive. If you make a payment, the amount is negative. If you receive a payment, the amount is positive.
| rate | The interest rate per period. For example, if periods are months, the rate should be adjusted to the monthly rate, not the annual rate (e.g., 8%/12, or 1.08^(1/12)-1 with monthly compounding).
| |
|---|---|---|
| nPer | Number of periods in the lifetime of an annuity. | |
| per | The period (between 1 and nPer) being computed. | |
| pv | The present value of the annuity. For example, for a loan this is the loan amount (positive if you receive the loan, negative if you are the lender). | |
| fv | The future value of the annuity. This is the remaining value of the annuity after the final payment. In the case of a loan, for example, this is the balloon payment at the end (positive if you are the lender, negative if you pay the balloon amount). This parameter is usually optional with a default value of zero. | |
| pmt | The total payment per period (interest + principal). If you receive payments, this is positive. If you make payments, this is negative. | |
| type | Indicates whether payments are due at the beginning or end of each period. | |
| True | Payments are due at the beginning of each period, with the first payment due
immediately. | |
| False (default) | Payments are due at the end of each period. |
Cumipmt(rate, nPer, pv, startPeriod, endPeriod, type)
Returns the cumulative interest paid on an annuity between, and including, startPeriod (shown as sp in equation below) and endPeriod (shown as ,code>ep in equation below). The annuity is assumed to have a constant interest rate and periodic payments. This is equal to:
Example: Interest payments during the first year on a $100,000 loan at 8% is:
Enable comment auto-refresher