Business Solutions Formulas and Functions with Microsoft® Office Excel 2007

Chapter 19. Building Investment Formulas

IN THIS CHAPTER

• Working with Interest Rates 469

• Calculating the Future Value 472

• Working Toward an Investment Goal 474

• Building an Investment Schedule 479

The time value of money concepts introduced in Chapter 18, “Building Loan Formulas,” apply equally well to investments. The only difference is that you need to reverse the signs of the cash values. That’s because loans generally involve receiving a principal amount (positive cash flow) and paying it back over time (negative cash flow). An investment, on the other hand, involves depositing money into the investment (negative cash flow) and then receiving interest payments (or whatever) in return (positive cash flow).

With this sign change in mind, this ...