How to Use the RECEIVED Function in Excel
Summary: Explore the capabilities of the RECEIVED function in Microsoft Excel—a vital tool for calculating the amount received at maturity from an investment with periodic payments. This tutorial is tailored for data analysts with expertise in mathematics, finance, and trend analysis, offering step-by-step instructions to seamlessly integrate the RECEIVED function into your financial analysis toolkit. By mastering this function, you can accurately determine the amount received from an investment.
The RECEIVED function within Excel empowers you to calculate the amount received at maturity from an investment with periodic payments. By leveraging this function, you refine your understanding of investment calculations and optimize your decision-making. To effectively employ the RECEIVED function, follow the comprehensive steps outlined below:
Open Excel: Launch Microsoft Excel on your computer.
Select a Cell: Choose the cell where you intend to display the calculated amount received at maturity.
Input the Formula: Enter the following formula into the selected cell:
=RECEIVED(settlement, maturity, investment, discount, [basis])Replace "settlement" with the settlement date, "maturity" with the maturity date, "investment" with the initial investment amount, "discount" with the discount rate, and "[basis]" with the day-count basis (optional).
Execute the Formula: After inputting the formula, press the Enter key to execute the RECEIVED function. The cell will now display the calculated amount received at maturity.
Illustrative Example: Suppose you are analyzing an investment with a settlement date of January 1, 2023, a maturity date of January 1, 2030, an initial investment of $10,000, and a discount rate of 0.06 (6%). Utilize this formula:
=RECEIVED("1-Jan-2023", "1-Jan-2030", 10000, 0.06)Analyzing the Result: As the cell displays the calculated amount received at maturity, you gain insights into the expected returns from the investment.
Conclusion: By mastering the RECEIVED function in Excel, you equip yourself with a valuable tool for accurately calculating the amount received at maturity from investments with periodic payments. By seamlessly integrating this function into your data analysis toolkit, you can refine your financial analysis proficiency and make well-informed investment decisions. Feel free to reach out with questions or insights, fostering further exploration of this topic.
Note: The RECEIVED function is available in various versions of Microsoft Excel, including Excel 2016, Excel 2019, and Microsoft 365.
