Apple iWork '09 User Manual
Page 351
Chapter 13
Additional Examples and Topics
351
Which Function Should You Use to Solve Common Financial
Questions?
This section describes some common questions you might want to address and lists
the financial function that might be helpful. The questions help with everyday financial
questions. More complex uses of the financial functions are described in “Regular Cash
Flows and Time Intervals” on page 348, “Irregular Cash Flows and Time Intervals” on
page 350, and “Example of a Loan Amortization Table” on page 353.
If you would like to know
This function may be helpful
Savings
The effective interest rate on an investment or
savings account that pays interest periodically
How much a CD will be worth at maturity
“FV” (page 120). Note that payment will be 0.
The nominal rate of interest on a CD where the
issuer has advertised the “effective rate”
How many years it will take to save a specific
amount, given monthly deposits to a savings
account
“NPER” (page 130). Note that present-value will
be the amount deposited at the beginning and
could be 0.
How much to save each month to reach a savings
goal in a given number of years
“PMT” (page 134). Note that present-value will
be the amount deposited at the beginning and
could be 0.
Loans
The amount of interest paid on a loan during the
third year
The amount of principal paid on a loan during
the third year
The amount of interest included in the 36th loan
payment
The amount of principal included in the 36th
loan payment
Bond Investments
The amount of interest that will need to be
added to a bond’s purchase price
“ACCRINT” (page 99) or “ACCRINTM” (page 101)
The number of coupon payments between the
time a bond is purchased and its maturity
The annual discount rate for a bond that is sold
at a discount to its redemption value and pays no
interest (often known as a “zero coupon bond”)