Time Value of Money Using Excel - 10 Examples

[@johnq3543]

What a great video, thank you so much. I've watched it twice and am getting the nuance of it (when a value is positive as opposed to negative). Again, thank you!

[@NM-ee3rp]

You’re a great teacher! Thank you!

[@FinallyLearn]

I appreciate that! Thanks for watching.

[@SriSanjayKumarPutsakayala]

TMOV made easy! Thank you!

[@FinallyLearn]

Glad it helped! Thanks for watching.

[@kirabraimah1741]

Thank you so much. simply explained

[@FinallyLearn]

Glad it was helpful! Thanks for watching.

[@mihaigrigore2136]

Thank you Sir. Very well explained!!!

[@FinallyLearn]

Thank you! Excel is great with TVM calculations.

[@nanagasimova9546]

Good day! First of all, thank you very much for sharing this useful video, I have exam tomorrow related to this topic, I think, now that I watched your video, I will do better! But I had one question, I wanted to clarify: why in the 9th exercise, we insert PV as a positive value? Didn't we put those 5000$ in our credit card? Wasn't it outflow as well?

[@FinallyLearn]

Good luck on your exam! On the credit card you borrow $5,000 so it is positive. Borrowing money is a cash inflow. The $100 is negative because it is a cash outflow. Your payments are cash outflows.

[@nanagasimova9546]

@@FinallyLearn I understood! Thank you very much!!

[@hakimmurshudov9084]

Thanks, Nana, for sharing the video with us, it really helped me to understand these things. And special gratitude for the teacher that explained comprehensively 👍🏻

[@jayrajjavheri8740]

Wonderfully Taught... Thank you sir

[@FinallyLearn]

Thanks for watching. I appreciate your kind words.

[@alashhab]

Could you share the link to download the calculator?

[@dannyhallmusicpublishing8271]

Thanks for the tutorial , I am wondering how do i access formula builder ?

[@FinallyLearn]

The fx function on the formula bar. Thanks!

[@nildareyes8281]

This is excellent! Thank you!

[@dannyhallmusicpublishing8271]

I am aware of the traditional formula builder , but yours looks different and it is on the side bar , I am using office 365 subscription

[@FinallyLearn]

The Windows version is in the middle and is moveable. The Mac version is anchored on the right. Both work the same but look different. Thanks for watching.

[@shubham8767]

Nicely explained. Thanks :)

[@kennethhill613]

Thank you!! But btw..for 3 im getting -1,472,017 ?

[@FinallyLearn]

The payments are at the beginning of the period so you need a 1 in the Type variable. See the calculation when I showed your number first.

[@ajmnz__6846]

thank u, u save me

[@FinallyLearn]

Glad this was helpful. Thanks for watching.

[@alinensiah1123]

Thanks

[@alexanderswimming]

thank you

[@FinallyLearn]

Thanks for watching! I hope it helped you.

[@nandedlamancunga1241]

With exercise number: 6 I am getting PMT= -R196.45 That's if I don't change anything to make it a positive. If I may ask, why would you choose to make PV to be negative whereas that's money you've got saved. How is that a negative value? I only get the same answer as you when I make that PV to be negative.

[@FinallyLearn]

Present value and future value should have opposite signs. In number 6, present value is negative because it is an out of pocket cost. Future value is positive because you will receive that amount in the future. So you pay (-) the present value and you receive (+) the future value.

[@nandedlamancunga1241]

@@FinallyLearn Understood! Many thanks.

[@nandedlamancunga1241]

With exercise number: 8 We we not supposed to divide the annual interest of 0.6% by 12 months instead of multiplying it as you have done?

[@FinallyLearn]

We need to convert the 0.6% monthly rate to an annual rate of 7.21%. So, we multiply the monthly rate x 12. Thanks for watching! I hope this was helpful. Good luck.

[@nandedlamancunga1241]

@@FinallyLearn Much appreciated

[@scooby7877]

for #2 can u just put the interest rate as .75 by doing 9/12 being the number of months

[@FinallyLearn]

Yes it is 9% or 0.09 for the year. This is monthly, that is 9/12 or 0.75% or 0.0075.

[@The_Blank_Life]

i tried doing the same in google spreadsheet , why is there difference in answers ?

[@FinallyLearn]

The functions in google sheets work the same way. If your input is the same, the answers will be correct.