Excel 2010 Bible

Part II: Working with Formulas and Functions

350

TABLE 15.4 (continued)

Cell Formula Description

B13 None (input cell) The annual interest rate

B16 =B4 Displays the initial investment amount

B17 =B5*B6*B10 Calculates the total of all regular deposits

B18 =B16+B17 Adds the initial investment to the sum of the deposits

B19 =B13*(1/B6) Calculates the periodic interest rate

B20 =FV(B19,B6*B10,-

B5,-B4,IF(B7,1,0))

Calculates the future value of the investment

B21 =B20-B18 Calculates the interest earned from the investment

Depreciation Calculations .................................................................................................

Excel offers five functions to calculate depreciation of an asset over time. Depreciating an asset

places a value on the asset at a point in time, based on the original value and its useful life. The

function that you choose depends on the type of depreciation method that you use.

Table 15.5 summarizes the Excel depreciation functions and the arguments used by each. For

complete details, consult the Excel online Help system.

TABLE 15.5

Excel Depreciation Functions

Function Depreciation Method Arguments*

SLN Straight-line. The asset depreciates by the same amount

each year of its life.

Cost, Salvage, Life

DB Declining balance. Computes depreciation at a fixed rate. Cost, Salvage, Life, Period,

[Month]

DDB Double-declining balance. Computes depreciation at an

accelerated rate. Depreciation is highest in the first period

and decreases in successive periods.

Cost, Salvage, Life, Period,

[Factor