From the course: Excel: Financial Modeling with Dynamic Arrays

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Building flexible model timelines

Building flexible model timelines - Microsoft Excel Tutorial

From the course: Excel: Financial Modeling with Dynamic Arrays

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Building flexible model timelines

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- [Instructor] One of the most useful applications of the SEQUENCE function in financial modeling is it allows you to build flexible timelines in a model. So here's an example where we are using some interest and principle calculations. When we get into building our financial statements, we will need to be able to split the interest and the principle components of the debt schedule so that the interest can go on the income statement and the principle can go on the balance sheet. The IPMT and the PPMT functions are great ways of doing this. So here's one that has been created using traditional formulas. So we've just used 1, 2, 3 across, and we've done a PMT function here, IPMT and PPMT. This is a great model. We can change the interest rate, we can change the loan amount, that's all fine. Everything will automatically calculate. But what we cannot change is the term of the loan that all of the formulas are going to fall over. So if we were to build this very same schedule, but to do…

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