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What is Index Match in Excel

The document explains the INDEX MATCH function in Excel, which combines the INDEX and MATCH functions to look up and return cell values based on specified criteria. It also details the PMT function, which calculates loan payments based on interest rates, payment periods, and loan amounts, providing syntax and examples for its use. Additionally, it includes examples of financial calculations such as depreciation and savings goals.

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tanusreedutta310
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17 views3 pages

What is Index Match in Excel

The document explains the INDEX MATCH function in Excel, which combines the INDEX and MATCH functions to look up and return cell values based on specified criteria. It also details the PMT function, which calculates loan payments based on interest rates, payment periods, and loan amounts, providing syntax and examples for its use. Additionally, it includes examples of financial calculations such as depreciation and savings goals.

Uploaded by

tanusreedutta310
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What is INDEX MATCH in Excel?

The INDEX MATCH Formula is the combination of two functions in Excel:


INDEX and MATCH

=INDEX() returns the value of a cell in a table based on the column and row
number.

=MATCH() returns the position of a cell in a row or column.

Combined, the two formulas can look up and return the value of a cell in a table
based on vertical and horizontal criteria. For short, this is referred to as just the
Index Match function.

Financial function

1)SLN

EXAMPLE
SUPPOSE YOU PURCHASED A CAR FOR 100000 THA HAS A USEFUL LIFE OF
10 YEARS AND A SALVAGE VALUE OF 7500. WHAT IS THE DEPRICIATION
ALLOWANCE FOR EACH YEAR ?
2) PMT
The Excel PMT function is a financial function that calculates the payment for a loan
based on a constant interest rate, the number of periods and the loan amount.

"PMT" stands for "payment", hence the function's name.

For the PMT function to work correctly in your worksheets, please keep in mind these
facts:

 To be in line with the general cash flow model, the payment amount is output as
a negative number because it's a cash outflow.
 The value returned by the PMT function includes principal and interest but does not
include any fees, taxes, or reserve payments that may be associated with a loan.
 A PMT formula in Excel can compute a loan payment for different payment frequencies
such as weekly, monthly, quarterly, or annually.

Excel PMT function - syntax and basic uses


The PMT function has the following arguments:

PMT(rate, nper, pv, [fv], [type])

Where:

 Rate (required) - the constant interest rate per period. Can be supplied as percentage
or decimal number.

For example, if you make annual payments on a loan at an annual interest rate of 10
percent, use 10% or 0.1 for rate. If you make monthly payments on the same loan,
then use 10%/12 or 0.00833 for rate.

 Nper (required) - the number of payments for the loan, i.e. the total number of periods
over which the loan should be paid.

For example, if you make annual payments on a 5-year loan, supply 5 for nper. If you
make monthly payments on the same loan, then multiply the number of years by 12,
and use 5*12 or 60 for nper.

 Pv (required) - the present value, i.e. the total amount that all future payments are worth
now. In case of a loan, it's simply the original amount borrowed.
 Fv (optional) - the future value, or the cash balance you wish to have after the last
payment is made. If omitted, the future value of the loan is assumed to be zero (0).
 Type (optional) - specifies when the payments are due:
o 0 or omitted - payments are due at the end of each period.
o 1 - payments are due at the beginning of each period.

EXAMPLE 1

IF YOU WANT TO SAVE RS 500000 IN 18 YEARS BY SAVING A CONSTANT


AMOUNT EACH MONTH, DETERMINE HOW MUCH YOU MUST SAVE?

** ASSUME THAT YOU WILL BE ABLE TO EARN 12% INTEREST ON YOUR


SAVINGS.

EXAMPLE 2

if you are applying for a two-year car loan with an annual interest rate of 7% and the
loan amount of 30,000, what your monthly payments will be?

Example3

if you borrow 100,000 for 5 years with an annual interest rate of 7%, the following
formula will calculate the annual payment:

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