Use The IRR (Internal Rate of Return) function categorized as one of the Financial function. It calculates the internal rate of return for an investment having subsequent cash inflows occurring at regular intervals, such as monthly or annually. The internal rate of return (IRR) is the discount rate at which the net present value of all […]

## IPMT function in Excel

Use The IPMT function calculates the interest payment portion from a given periodic payment against an investment, based on periodic constant payments. For example, suppose you made an investment of $1000 for one year with monthly periodic payments, by using the IPMT, you can segregate the interest received from any specified monthly payment. Similarly, you can also calculate […]

## EFFECT function in Excel

Use The EFFECT function calculates an effective annual interest rate for a loan or an investment if the compounding periods per year along with the nominal interest rate are given. The function is one of the Financial functions, often used to make the comparison between loans with different compounding periods. Syntax EFFECT(nominal_rate, npery) The EFFECT function has […]

## DURATION function in Excel

Use The DURATION function, categorized as a Financial function, calculates the Macauley duration of a security that has a par value of $100 and pays interest on a periodic basis. The function is useful for predicting future cash flows of investments. Syntax DURATION(settlement, maturity, coupon, yld, frequency, [basis]) settlement – Required. The security’s settlement date. The date on […]

## DOLLARDE function in Excel

Use The DOLLARDE function (a Financial function) converts a dollar price, expressed as a fraction, into a dollar price, expressed as a decimal number. For example, to convert the price “1 and 1/16” into an equivalent decimal number i.e. “1.0624”, the DOLLARDE function will be used as under: Result: The function converts 1.01, read as 1 […]

## DISC function in Excel

Use The DISC function calculates the discount rate for a security. It is a Financial function and first introduced in the Excel 2007 version. Syntax DISC(settlement, maturity, pr, redemption, [basis]) settlement – Required. The date on which the security was traded to the buyer. maturity – Required. The maturity date of the security. The date on which the security expires. pr – Required. The price […]

## DDB function in Excel

Use The DDB function (a Financial function) calculates depreciation of an asset by using the Double Declining (DDB) Method or another method specified by the user. Syntax DDB(cost, salvage, life, period, [factor]) The DDB function has the following arguments: cost – Required. The cost to purchase or the initial cost of an asset. salvage – Required. The remaining useful […]