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Introduction to Personal Finance Calculations Using the Finance Package

The Finance package assists you in performing financial calculations and financial modeling.  This example worksheet introduces the personal finance commands in the Finance package. With these commands, you can calculate the present value and the accumulated value of annuities, growing annuities, perpetuities, growing perpetuities and level coupon bonds. Moreover, it can also help you compute the yield to maturity of a bond. You can construct an amortization table, determine the effective rate of interest for a given compound interest rate, and find the present value and the future value of a fixed quantity for a given compound interest rate.


Note: All examples use dollars ($) and all interest rates are in terms of percent (%). The default setting for floating-point precision is 10.





For more information, consult the Overview of the Finance package help page. You can also refer to the following help pages: amortization, annuity, growingannuity, cashflows, levelcoupon, yieldtomaturity, effectiverate, futurevalue, presentvalue, perpetuity, and growingperpetuity.


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