Course: Excel Time Value of Money Functions for CPAs
Practical applications for accounting, financial planning and capital budgeting

Author: Joseph P. Helstrom, CPA

Course Description:
This course uses practical examples to provide an overall understanding of time value of money concepts and to illustrate time value of money functions in Microsoft Excel.  The course covers present and future values of both single sums and annuities as well as computing the rate, periodic payment and number of periods in accounting and financial planning scenarios.  Also included is the creation of an amortization table, Excel CUMIPMT and CUMPRINC functions, capital budgeting and the use of data tables.  Written for Excel 2007, the course is intended for intermediate to advanced Excel users.

This course provides step by step instruction however it does not include exercise files as the examples are simple and can be created easily.

 Click here for Table of Contents

NASBA Category: Computer Science/Specialized Knowledge

Level: Prerequisites: Excel 2007/Excel 2010 

Learning Objective:

Using practical examples in all cases –

• An understanding of time value of money concepts
• An understanding of Excel’s time value of money functions
• Recognize the difference between a single sum and annuity
• Understand compounding periods and the appropriate adjustments to rate and number of periods
• Understand Excel’s sign convention
• Use of present value and future value functions in financial planning and analysis
• How to solve for rate, number of periods and payment
• Create an amortization table
• Use the Excel CUMIPMT and CUMPRINC functions
• Be familiar with annuities due
• Capital budgeting using internal rate of return and net present value
• Use of data tables to present alternatives

.