For an accountant , to know financial formulae of Google docs and use them practically in google docs is very good for becoming expert . Google Docs help center has given already the total list of formulae in which 46 formulae are totally relating to Financial and it can be used by accountants and account managers . Now , we learn its practical use .

1. Formulas Relating to Interest

(A) Name of Formula = Accrued interest

Syntex =ACCRINT(issue, first_interest, settlement, rate, par, frequency, basis)

Calculates the accrued interest of a security in the case of periodic payments. Issue is the issue date of the security. First_interest is the first interest date of the security. Settlement is the maturity date. Rate is the annual nominal rate of interest (coupon interest rate). Par is the par value of the security. Frequency is the number of interest payments per year (1, 2 or 4). Basis is chosen from a list of options and indicates how the year is to be calculated.

(B) Accrued interest

ACCRINTM(issue, settlement, rate, par, basis)

Calculates the accrued interest of a security in the case of one-off payment at the settlement date. Issue is the issue date of the security. Settlement is the maturity date. Rate is the annual nominal rate of interest (coupon interest rate). Par is the par value of the security. Basis is chosen from a list of options and indicates how the year is to be calculated.

(C) Interest

COUPDAYBS(settlement, maturity, frequency, basis)

Returns the number of days from the first day of interest payment on a security until the settlement date. Settlement is the date of purchase of the security. Maturity is the date on which the security matures (expires). Frequency is the number of interest payments per year (1, 2 or 4). Basis is chosen from a list of options and indicates how the year is to be calculated.

( D) Interest

COUPDAYS(settlement, maturity, frequency, basis)

Returns the number of days in the current interest period in which the settlement date falls. Settlement is the date of purchase of the security. Maturity is the date on which the security matures (expires). Frequency is the number of interest payments per year (1, 2 or 4). Basis is chosen from a list of options and indicates how the year is to be calculated.

(E) Interest / settlement
COUPDAYSNC(settlement, maturity, frequency, basis)

Returns the number of days from the settlement date until the next interest date. Settlement is the date of purchase of the security. Maturity is the date on which the security matures (expires). Frequency is the number of interest payments per year (1, 2 or 4). Basis is chosen from a list of options and indicates how the year is to be calculated.

(F) First interest date
COUPNCD(settlement, maturity, frequency, basis)

Returns the date of the first interest date after the settlement date, and formats the result as a date. Settlement is the date of purchase of the security. Maturity is the date on which the security matures (expires). Frequency is the number of interest payments per year (1, 2 or 4). Basis is chosen from a list of options and indicates how the year is to be calculated.

(G) Date of interest date
COUPPCD(settlement, maturity, frequency, basis)

Returns the date of the interest date prior to the settlement date, and formats the result as a date. Settlement is the date of purchase of the security. Maturity is the date on which the security matures (expires). Frequency is the number of interest payments per year (1, 2 or 4). Basis is chosen from a list of options and indicates how the year is to be calculated.

(H)Cumulative interest payments
CUMIPMT(rate, NPER, PV, S, E, type)

Calculates the cumulative interest payments (the total interest) for an investment based on a constant interest rate. Rate is the periodic interest rate. NPER is the payment period with the total number of periods. NPER can also be a non-integer value. The rate and NPER must refer to the same unit, and thus both must be calculated annually or monthly. PV is the current value in the sequence of payments. S is the first period. E is the last period. Type is the due date of the payment at the beginning (1) or end (0) of each period.

(I) Cumulative interest with constant interest rate
CUMPRINC(rate, NPER, PV, S, E, type)

Returns the cumulative interest paid for an investment period with a constant interest rate. Rate is the periodic interest rate. NPER is the payment period with the total number of periods. NPER can also be a non-integer value. The rate and NPER must refer to the same unit, and thus both must be calculated annually or monthly. PV is the current value in the sequence of payments. S is the first period. E is the last period. Type is the due date of the payment at the beginning (1) or end (0) of each period.

(J) Effective annual interest rate

EFFECT(NOM, P)

Returns the effective annual interest rate, given the nominal annual interest rate (NOM) and the number of compounding periods (P) per year.

(K) Annual interest rate
INTRATE(settlement, maturity, investment, redemption, basis)

Calculates the annual interest rate that results when a security (or other item) is purchased at an investment value and sold at a redemption value with no interest being paid. Settlement is the date of purchase of the security. Maturity is the date on which the security is sold. Investment is the purchase price. Redemption is the selling price. Basis is chosen from a list of options and indicates how the year is to be calculated.

(L)Constant interest rate
RATE(NPER, PMT, PV, FV, type, guess)

Returns the constant interest rate per period of an annuity. NPER is the total number of periods, during which payments are made (payment period). PMT is the constant payment (annuity) paid during each period. PV is the cash value in the sequence of payments. FV (optional) is the future value, which is reached at the end of the periodic payments. Type (optional) defines whether the payment is due at the beginning (1) or the end (0) of a period. Guess (optional) determines the estimated value of the interest with iterative calculation.

2. Formulas Relating to Depreciation , Allowance and amoritization

(A) Depreciation of asset
Formula

=DB(cost, salvage, life, period, month)

Returns the depreciation of an asset for a specified period using the double-declining balance method. Cost is the initial cost of an asset. Salvage is the value of an asset at the end of the depreciation. Life defines the period over which an asset is depreciated. Period is the length of each period. The life must be entered in the same date unit as the depreciation period. Month (optional) denotes the number of months for the first year of depreciation.

(B)Depreciation

Formula
=DDB(cost, salvage, life, period, factor)

Returns the depreciation of an asset for a specified period using the arithmetic-declining method. Note that the book value will never reach zero under this calculation type. Cost fixes the initial cost of an asset. Salvage fixes the value of an asset at the end of its life. Life is the number of periods defining how long the asset is to be used. Period defines the length of the period. The period must be entered in the same time unit as the life. Factor (optional) is the factor by which depreciation decreases.

(C) Allowance

Formula

=DISC(settlement, maturity, price, redemption, basis)

Calculates the allowance (discount) of a security as a percentage. Settlement is the date of purchase of the security. Maturity is the date on which the security matures (expires). Price is the price of the security per 100 currency units of par value. Redemption is the redemption value of the security per 100 currency units of par value. Basis is chosen from a list of options and indicates how the year is to be calculated.

(d)Periodic amoritization

Formula

=IPMT(rate, period, NPER, PV, FV, type)

Calculates the periodic amortization for an investment with regular payments and a constant interest rate. Rate is the periodic interest rate. Period is the period for which the compound interest is calculated. NPER is the total number of periods during which annuity is paid. Period=NPER, if compound interest for the last period is calculated. PV is the present cash value in sequence of payments. FV (optional) is the desired value (future value) at the end of the periods. Type (optional) defines whether the payment is due at the beginning (1) or the end (0) of a period.

(E)Straight-line depreciation

Formula

=SLN(cost, salvage, life)

Returns the straight-line depreciation of an asset for one period. The amount of the depreciation is constant during the depreciation period. Cost is the initial cost of an asset. Salvage is the value of an asset at the end of the depreciation. Life is the depreciation period determining the number of periods in the depreciation of the asset.

(F) Arithmetic-declining depreciation rate

Formula

=SYD(cost, salvage, life, period)

Returns the arithmetic-declining depreciation rate. Use this function to calculate the depreciation amount for one period of the total depreciation span of an object. Arithmetic declining depreciation reduces the depreciation amount from period to period by a fixed sum. Cost is the initial cost of an asset. Salvage is the value of an asset after depreciation. Life is the period fixing the time span over which an asset is depreciated. Period defines the period for which the depreciation is to be calculated.

3. Formulas Relating to Capital Budgeting and Investment Decisions

(A) Internal Rate of Return

Formula

=IRR(values, guess)

Calculates the internal rate of return for an investment. The values represent cash flow values at regular intervals, at least one value must be negative (payments), and at least one value must be positive (income). Values is an array containing the values. Guess (optional) is the estimated value. If you can provide only a few values, you should provide an initial guess to enable the iteration.

(B) Modified internal rate of return

Formula
=MIRR(values, investment, reinvest_rate)

Calculates the modified internal rate of return of a series of investments. Values corresponds to the array or the cell reference for cells whose content corresponds to the payments. Investment is the rate of interest of the investments (the negative values of the array) Reinvest_rate is the rate of interest of the reinvestment (the positive values of the array).

(C) Number of periods for an investment

Formula

=NPER(rate, PMT, PV, FV, type)

Returns the number of periods for an investment based on periodic, constant payments and a constant interest rate. Rate is the periodic interest rate. PMT is the constant annuity paid in each period. PV is the present value (cash value) in a sequence of payments. FV (optional) is the future value, which is reached at the end of the last period. Type (optional) defines whether the payment is due at the beginning (1) or the end (0) of a period.

(D) Net present value

Formula

=NPV(Rate, value_1, value_2, ... value_30)

Returns the net present value of an investment based on a series of periodic cash flows and a discount rate. Rate is the discount rate for a period. Value_1, value_2,... value_30 are values representing deposits or withdrawals.

(E) Periodic payment

Formula
=PMT(rate, NPER, PV, FV, type)

Returns the periodic payment for an annuity with constant interest rates. Rate is the periodic interest rate. NPER is the number of periods in which annuity is paid. PV is the present value (cash value) in a sequence of payments. FV (optional) is the desired value (future value) to be reached at the end of the periodic payments. Type (optional) defines whether the payment is due at the beginning (1) or the end (0) of a period.

(F ) Payment on principal

Formula
=PPMT(rate, period, NPER, PV, FV, type)

Returns for a given period the payment on the principal for an investment that is based on periodic and constant payments and a constant interest rate. Rate is the periodic interest rate. Period is the amortization period. NPER is the total number of periods during which annuity is paid. PV is the present value in the sequence of payments. FV (optional) is the desired (future) value. Type (optional) defines whether the payment is due at the beginning (1) or the end (0) of a period.

(G ) Capital value

Formula
=XNPV(rate, values, dates)

Calculates the capital value (net present value) for a list of payments which take place on different dates. The calculation is based on a 365 days per year basis, ignoring leap years. If the payments take place at regular intervals, use the NPV function. Rate is the internal rate of return for the payments. Values and dates are a series of payments and the series of associated date values entered as cell references.

4. Other Financial Formulas

(A )Treasury bill price

Formula
TBILLPRICE(settlement, maturity, discount)

Calculates the price of a treasury bill per 100 currency units. Settlement is the date of purchase of the security. Maturity is the date on which the security matures (expires). Discount is the percentage discount upon acquisition of the security.

(B)Price per 100 currency units

Formula
=PRICEMAT(settlement, maturity, issue, rate, yield, basis)

Calculates the price per 100 currency units of par value of a security, that pays interest on the maturity date. Settlement is the date of purchase of the security. Maturity is the date on which the security matures (expires). Issue is the date of issue of the security. Rate is the interest rate of the security on the issue date. Yield is the annual yield of the security. Basis is chosen from a list of options and indicates how the year is to be calculated.

(C) Annual yield

Formula
=YIELDDISC(settlement, maturity, price, redemption, basis)

Calculates the annual yield of a non-interest-bearing security. Settlement is the date of purchase of the security. Maturity is the date on which the security matures (expires). Price is the price (purchase price) of the security per 100 currency units of par value. Redemption is the redemption value per 100 currency units of par value. Basis is chosen from a list of options and indicates how the year is to be calculated. .

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