Brother International PDP350CJ Owner's Manual - English - Page 391

Function Description Example PMT (principal, interest, term) Calculates the constant payment required to repay a loan at a specified interest rate over a given period of time. Principal is the amount of the loan. Interest is the interest rate for the same time period as the term. Term is the interval at which the payments are made. Be careful to enter the interest rate for the same time period as the terms. Use the PMT function to determine the monthly payment for a 20 year loan of $75,000, at 5% annual interest. =PMT(75000,.05/12,240) returns $494.97. PV Present value RATE (future value, present value, term) Required interest rate to reach a future value. Future_value is the value of the annuity at the end of the investment period. Present_value is the value of the annuity today. Term is the time periods for the investment. If you have $5000, what annual interest rate would you need to have $8000 in 5 years? =RATE(8000,5000,5) returns 9.86%. SLN (cost, salvage, life) Straight-linedepreciation. Cost is the initial cost of the asset. Salvage is the value of the asset at the end of the time period. Life is the useful life of the asset, the number of time periods the asset is being depreciated. =SLN(12000,2000,5) returns 2000. SYD (cost, salvage, life, period) Accelerated depreciation of an asset, using the sum of year's digits method. Cost is the initial cost of the asset. Salvage is the value of the asset at the end of the time period. Life is the useful life of the asset, the number of time periods the asset is being depreciated. Period is the period to analyze. What is the depreciation in the 4th year for a computer system that initially cost $12000, which after 5 years could be sold for $2000? =SYD(12000,2000,5,4) returns $1333.33. TERM (payments, interest, future value) Required number of terms or payment periods to reach a future value. Payments are made at the end of each term and earn a constant interest rate. Payments is the amount of the periodic payments. Interest is the interest rate for the investment per time period. Future_value is the value of the annuity at the end of the investment period. Be careful to enter the interest rate for the same time period as the term. How long will it take to accrue $10,000 if you make monthly payments of $250 at an annual interest rate of 5.5%? =TERM(250,.055/12,10000) returns 36.8. Appendix 364