An amortization table in Excel can be created using the PMT, PPMT and IPMT functions. The table reflects the amount of each payment, the portions that go toward principal or interest and the outstanding balance.
Continue ReadingAn amortization table is used to outline the details of a long-term loan, such as a mortgage or auto loan. It displays each payment made toward paying off the loan.
Step 1: Create the necessary rows
The rows should be labeled "annual interest rate," "years," "payments per year," "amount of loan" and "payment amount." The next column over should have all the applicable figures next to these cells.
Step 2: Calculate the monthly payments
Use the PMT Excel function to calculate the payments. This function takes into account the interest rate, the total number of payments, the present value and the future value of the loan.
Step 3: Calculate how the payment will be applied
Use the PPMT function and the IPMT function to figure out how much of each payment will go toward principal, and how much toward the interest. After subtracting both from the outstanding amount, the balance should be updated.
Step 4: Outline the rest of the payments
Select the cells reflecting the first payment amounts and balance and drag it down one row. Update the formula to reflect the data for the second payment. Repeat for the remaining number of payments, as necessary, until the balance reaches zero.
Learn more about SoftwareThough there are several functions in Excel for rounding numbers, the ROUND function is the most basic and the most commonly used. Keep in mind that when using any rounding function, its result is always treated as rounded by any formulas that reference it and can potentially alter calculations.
Full Answer >Tips for passing an Excel test include reviewing concepts and functions through the program's support page on Office.com, taking practice tests to learn about the different topics that may appear and using online courses to focus on specific areas of the program. It may also help to purchase a book or study guide to focus on a specific version of the software.
Full Answer >Some common Microsoft Excel functions include SUM, IF, LOOKUP, VLOOKUP and MATCH, as of the Excel 2013 version. SUM adds the values in selected cells, IF returns a value based on true-or-false conditions and LOOKUP finds a value from a row or column based on a selected row or column.
Full Answer >The "Excel 2013 for Dummies" book includes examples of spreadsheets for users to familiarize themselves with worksheet creation and editing functions. The book does not contain an exhaustive list of examples, but it provides the reader with skills to interpret data and create their own spreadsheets and databases.
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