Not long
ago, before the now-popular personal computers, the discrete
compounding interest factors found in the appendix of college
textbooks or other reference manuals were used to calculate
compound interest rate, discount rate, net present value,
future value, fixed payment, etc.
These tabulated factors
are pre-calculated from formulas, and reduce the time and
complexity required for manual calculation. However, experience
shows that this is far from a simple process. First, the number
of terms and the available interest rate must be found in
the tables to determine the conversion factor. Not all combinations
are listed in the table, and conversion factors must then
be approximated by interpolation or extrapolation, further
complicating the process and leading to inaccuracies.
Hand-held financial calculators were the next step to simplify
the complexities of financial calculations. However, the
function keys designated for cash flows, number of periods,
NPV, interest rate, FV, loan payment, etc., are not necessarily
intuitively obvious to operate, and can be confusing at
first. Other drawbacks of using hand-held calculators are
limited screen output, limited functionality, results can
not be stored, etc.
The introduction and availability of personal computers
has revolutionized many fields, including the financial
industry. The Precision Financial Calculator now provides
numerous advantages, including ease of data entry, storage,
retrieval, and display of results for reports and presentations.
The dynamic loan payment analysis tables provide loan officers
a wide spectrum of dynamic scenarios analysis. The graphics
presentations provide visual aid to your financial analyses.
With Precision, you can do multiple DCFROR analyses simultaneously
for multiple sets of cash flow imported from an Excel spreadsheet
file. Precision makes it even easy to compare scenarios
by providing charting and tabular listing.
Since weve posted the software on the Internet, the feedback
has been quite encouraging. Many helpful suggestions and
functionality enhancements have been incorporated in version
updates, making the Precision Financial Calculator a solid
and practical tool for your professional financial applications.
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