MBA's Guide to Microsoft Excel

ebt amortization schedules ensure that your financial models and accounting records of amortized debt instruments are precise and accurate. Using an amortization sched- ule lets you track the principal balance, debt service payments, and principal and interest components of the payments on a debt instrument.

The debt amortization starter workbooks in this chapter automate the preparation of debt amortization schedules and provide foundations for customizing schedules. These starter workbooks (and the amortization conventions they use) are as follows:

• FIXRATE.XLS (fixed interest rate, ordinary annuity)

• FIXDUE.XLS (fixed interest rate, annuity due)

• VARIRATE.XLS (variable interest rate, ordinary annuity)

• VARIDUE.XLS (variable interest rate, annuity due)

Chapter Contents:

• EasyRefresher: Amortizing Debt
• Using the Debt Amortization Starter Workbooks
• Understanding the Fixed Rate, Ordinary Annuity Amortization Starter Workbook
• Understanding the Fixed Rate, Annuity Due Amortization Starter Workbook
• Understanding the Variable Rate, Ordinary Annuity Amortization Starter Workbook
• Understanding the Variable Rate, Annuity Due Amortization Starter Workbook
• Customizing the Debt Amortization Starter Workbooks