After completing Lesson 3 you will be able to:

• Setup a Loan Amortization Schedule using payment functions in Microsoft Excel

• Apply the =PMT function for calculating the loan payments that must be made

• Apply the =IPMT function for calculating the interest payments made on a loan

• Apply the =PPMT function for calculating the principal payments made on a loan

• Apply the INTRATE function to calculate what interest rate is paid on a loan given the monthly payment

• Apply the =EFFECT function to calculate what the effective interest rate on a loan is

• Apply the =YIELD function to calculate the yield on a fixed income security

• Apply the =YIELDMAT function to calculate the yield to maturity on a fixed income security

• Apply four different financial functions for calculating depreciation of assets

This lesson will highlight some examples of how Microsoft Excel is used for basic financial calculations. These calculations are illustrated in the Lesson 3 Workbook. Please make sure you download and use this workbook in order to complete this lesson.