Managing personal and corporate finances takes careful planning. Many individuals and businesses try to save a certain amount of money, whether as part of an individual retirement account or a building fund. Once you determine how much you can set aside each month, you can use Excel’s NPER function to see how long it will take you to reach your goal.
- [Instructor] One way to evaluate an investment…is to determine how long it will take for you…to start with a set amount of money,…and given an annual interest rate,…or rate of growth,…how long it will take to reach a future value.…I will show you how to calculate…the number of investment periods required…to meet your goal.…We'll use the PDURATION function,…and we'll base it on the values…in my sample file Duration_01_09,…which you can find in the chapter one folder…of your exercise files collection.…
To calculate the period duration,…or PDURATION, of an investment,…we need to know three things.…The first is the annual interest rate…of 5% in this case.…We're gonna be compounding our interest monthly,…so we'll divide that by 12.…Next, in C4 is the present value,…that's the amount we start with,…and then we have the future value,…which is the amount we want to end up with.…And again our goal is to calculate the number of periods…that will be required to reach our goal.…
So I'll click cell C8,…type an = sign to start the formula,…
Lynda.com is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- Analyzing loans, payments, and interest
- Calculating depreciation
- Determining values and rates of return
- Calculating bond coupon dates and security durations
- Calculating security prices and yields
- Calculating prices and yields of securities with odd periods
- Analyzing simulation results
Skill Level Intermediate
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Analyzing Simulation Results
Next steps1m 12s
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
This will not affect your course history, your reports, or your certificates of completion for this course.Cancel
Take notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.