We can write Excel VBA code to perform complex financial calculations. Here we have created a financial calculator to calculate the periodic payment for a loan taken from the bank. Below is the Excel VBA code for the financial calculator and its output interface.
The formula to calculate periodic payment is payment=Initial Principal/PVIFA, where PVIFA is known as present value interest factor for an annuity . The formula to compute PVIFA 1/i - 1/i(1+i)n where n is the number of payments. Normally you can check up a financial table for the value of PVIFA and then calculate the payments manually.
The function Format is to determine the number of decimal places and the use of the $ sign. The runtime interface is as shown in Figure 14.1
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