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Example 3: Taking example 2 a little further
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We want to end up with
This is actually as easy as working with any standard Excel function. Enter
the A column as presented above, and write "Discount factor" in the B1
cell.
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Enter the following function in cell B2: "=Math("DiscountFactor","3",A2,"Compounding
-> {Exponential, 12}")".
- Instead of entering the function directly you can also work through
example 2, and move the function to the cell B2. Now press F2, having selected
the B2 cell where the formula is located now, and change the interest rate
from "8.5" to A2. Copy the B2 cell to the range of cells B3:B11, and the
above should result.
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