# annuity calculator excel Ten Things Your Boss Needs To Know About Annuity Calculator Excel

Annuities action a alternation of regular, anchored payments for loans or investments.

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Annuities represent a accommodation or advance which action anniversary anchored payments until the anniversary is depleted or paid off. Whether you are advance or borrowing money does not change the calculation. As an example, you may accept a retirement annuity, which pays you a assertive anniversary or anniversary payment, based on the bulk you initially advance in the annuity. Another accepted archetype is a mortgage or car loan, area you borrow money and charge accord the accommodation with a alternation of anchored anniversary payments. Microsoft Excel offers four inherent functions for artful the anniversary payments, present value, cardinal of payments and the absorption bulk of an annuity.

1.

Enter the absorption bulk in decimal architecture in corpuscle A1. If you are artful anniversary payments, rather than anniversary payments, access “=rate/12” and alter “rate” with the absolute rate, such as “=0.06/12”. If this is the capricious you ambition to calculate, omit this step.

2.

Enter the cardinal of acquittal periods in corpuscle A2. If you are artful anniversary payments, accumulate the cardinal of years by 12 application the blueprint “=years12”. Alter “years” with the absolute cardinal of years, such as “=512” for 5 years. If this is the capricious you ambition to calculate, omit this step.

3.

Enter the accommodation or advance bulk in corpuscle A3. If you are entering an advance amount, blazon it as a abrogating number, because it represents money you are currently spending. If this is the capricious you ambition to calculate, omit this step.

4.

Enter the alternate payments in corpuscle A4. If this is the capricious you ambition to calculate, omit this step.

5.

Type “=PMT(A1,A2,A3)” in corpuscle A5 to account the alternate acquittal amount. If the aftereffect appears red and parenthesized, it represents a acquittal you make. If it’s in accustomed font, again it’s a acquittal you receive.

6.

Type “=NPER(A1,A4,A3)” in corpuscle A6 to account the cardinal of alternate payments.

7.

Type “=PV(A1,A2,A4)” in corpuscle A7 to account the aboriginal accommodation or advance amount. A accommodation appears in accustomed font, because it represents money you received. An advance appears red and parenthesized, because it represent money you initially spent.

8.

Type “=RATE(A2,A4,A3)” in corpuscle A8 to account the alternate absorption bulk of the annuity. If you are application anniversary periods, rather than anniversary periods, you may access “=RATE(A2,A4,A3)*12” to account the anniversary absorption rate.

annuity calculator excel
Ten Things Your Boss Needs To Know About Annuity Calculator Excel – annuity calculator excel
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Last Updated: November 5th, 2018 by
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