Microsoft Excel, Financial Functions, Matter in Dispute
14 Pages Posted: 11 Dec 2002 Last revised: 10 Jun 2016
Date Written: October 15, 2002
In (business) economics one often has to deal with amounts of money at different points in time. One cannot say much about main economical issues without proper money calculus; these calculus are the foundation. Using PPR (Period Percentage Rate, any period, any rate) i.e. Discrete Compound Interest to rank investments is often deceptive. Financial tools like Microsoft Excel using PPR are dangerous.
Keywords: Effective Interest Rate, Financial Calculus, Capital Budgeting Decisions
JEL Classification: G12, G31
Suggested Citation: Suggested Citation