Microsoft Excel, Financial Functions, Matter in Dispute

14 Pages Posted: 11 Dec 2002 Last revised: 10 Jun 2016

Date Written: October 15, 2002

Abstract

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

Jacobs, Jan F., Microsoft Excel, Financial Functions, Matter in Dispute (October 15, 2002). Available at SSRN: https://ssrn.com/abstract=340301 or http://dx.doi.org/10.2139/ssrn.340301

Jan F. Jacobs (Contact Author)

Independent ( email )

Beethovenlaan 36
Enschede, Overijssel 7522 HJ
Netherlands

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