Excel Calculation & Its Meaning VII
In our previous series of Financial Calculation through MSExcel tools , we covered
· PRICE
· PRICEDISC
· PRICEMAT
· PV
· RATE
· RECEIVED
· RRI
In this Post We will cover some financial terms like
· SLN
· SYD
· TBILLEQ
· TBILLPRICE
· TBILLYIELD
· VDB
For More details regarding Microsoft Excel and its function, Please click the Link Below
https://www.thearticle111.com/2021/01/excelcalculationitsmeaningviii.html
MSExcel Financial terms 
43)
SLN:–It is also called Straight Line Depreciation. This function calculates the depreciation of an asset on a straightline basis for one period. In financial modeling, the SLN function helps calculate the straightline depreciation of a fixed asset when building a budget.
Syntax:
=SLN(cost, salvage, life)
 Cost (required argument) – This is the initial cost (Purchase cost) of the asset.
 Salvage (required argument) – The value at the end of the depreciation (sometimes called the salvage value of the asset). It is the Sale value an asset after depreciation.
 Life (required argument) – This is the number of periods over which the asset is depreciated (sometimes called the useful life of the asset).
Notes
· Straightline depreciation is the simplest way of calculating the depreciation of a fixed asset.
· The formula used in calculating straightline depreciation is:
SLN = (Cost – Salvage)
—————
Life
Eg:
Item 
Cost (Purchase value) 
Salvage (Sale Value) 
Life (number of period) 
SLN =SLN(cost,salvage,life) 
Computer 
25000 
3000 
5 
=SLN(25000,3000,5) =4400 
Bike 
200000 
25000 
7 
=SLN(200000,25000,7) =25000 
Car 
1000000 
200000 
10 
=SLN(1000000,200000,10) =80000 
Mathematical Value
Computer:
Purchase value=25000 Salvage value=3000 Life=5 years
SLN = (Cost – Salvage)
————— = 25000—3000= 22000
Life
=22000/5 =Rs.4400 = same value as in calculated in Excel formula
44)
SYD:– SYD is short for sum of years digits. This function calculates the “sumofyears” depreciation for an asset in a given period in the lifetime of an asset.
Syntax :—
SYD(cost, salvage, life, per)
Mathematical formula of SYD=
costsalvage ———– i
(lifeper+1)*2 ————ii
life*(life+1) ———–iii
SYD= i*ii
——
iii
Where
 Cost is the initial cost of the asset
 Salvage is the final value of the asset at the end of its lifetime
 Life is the number of periods over which the depreciation occurs
 Per is the period for which the depreciation is being calculated
Eg:
Item 
Cost (Purchase value) 
Salvage (Sale Value) 
Life (number of period) 
SLN =SLN(cost,salvage,life) 
Computer 
25000 
3000 
5 
=SLN(25000,3000,5) =4400 
YEAR 
SLN value 
1 
4400 
2 
4400 
3 
4400 
4 
4400 
5 
4400 
TOTAL 
22000 
SALVAGE value 
3000 
COST value 
25000 
YEAR 
SYD value =SYD(cost,salvage,life,per) 
1 
=SYD(25000,3000,5,1) =7,333.33 
2 
=SYD(25000,3000,5,2) =5,866.67 
3 
=SYD(25000,3000,5,3) =4,400.00 
4 
=SYD(25000,3000,5,4) =2,933.33 
5 
=SYD(25000,3000,5,5) =1,466.67 
TOTAL 
22000 
SALVAGE value 
3000 
COST value 
25000 
Mathematical value
costsalvage ———– i
(lifeper+1)*2 ————ii
life*(life+1) ———–iii
SYD= i*ii
——
Iii
SYD =
Per=4
Costsalvage= 250003000= 22000 ————————–i
(lifeper+1)*2 ———— = (54+1)*2 = 4 —————–ii
life*(life+1) ——— = 5*(5+1) =30 ———————–iii
SYD= i*ii
—————–
iii
= 22000*4= 88000/30 = Rs. 2933.33 (same value on per=4)
45)
TBILLEQ:– This function calculates the bondequivalent yield for a Treasury bill (TBill). (Treasury Bill is issued by the Central Government. It is used by us for Money Market or Huge Marketing purpose for Bond purchasing. Treasury Bill is a kind of Loan whose duration is less than a year. The duration of Bond which you purchase directly is between 1 to 30 years.)
Syntax:
=TBILLEQ(settlement, maturity, discount)
· Settlement (required argument) – This is the settlement date of the Tbill. It is the date after the issue date when the Tbill is traded to the buyer.
 Maturity (required argument) – The date when the Tbill will matured. It must be greater than and within one year of the settlement date. This is so, as the life of Tbills is less than one year.
 Discount (required argument) – The Tbill discount rate. We can take from the riskfree investment rate if unavailable.
Mathematical formula
TBILLEQ = (365 × rate)/(360(rate × DSM))
Here DSM is the number of days from settlement to maturity. Treasury bills are generally known as Tbills and have a maximum maturity of less than one year (364 days). Hence, they are categorized as money market methods.
Settlement Date 
Maturity Date 
Discount Rate 
TBILLEQ =TBILLEQ(settlement,maturity,discount) 
04012018(April 01,2018) 
09302018(Sept 30, 2018) 
7.30% 
=TBILLEQ(04012018,09302018,7.30%) =0.076850084 =0.076850084*100 =7.69% 
Mathematical formula
TBILLEQ = (365 × rate)/(360(rate × DSM))
=(365*7.30%)/ (360 (7.30%*176))
=26.645/ 36012.848 =26.745/347.152 = 0.0770411
=0.0770411*100 = 7.70% (same as calculated with Excel function)
46)
TBILLPRICE:–This function calculates the price per $100 face value (can be understood as Rs. 100 in context of Indian Market) for a Treasury bill, based on a settlement date, a maturity date, and a discount. It will calculate the fair market value of a Treasury bill / bond. This function is useful determining the value of a bond and deciding if an investment should be made or not.
Syntax
=TBILLPRICE(settlement, maturity, discount)
 Settlement (required argument) – This is the settlement date of the Tbill. The security settlement date is the date after the issue date when the Tbill is traded to the buyer.
 Maturity (required argument) – This is the Tbill’s maturity date. The maturity date is the date when the Tbill is matured.
 Discount (required argument) – The Tbill’s (Treasury Bill) discount rate of the security
Eg:
Settlement Date 
Maturity Date 
Discount Rate 
TBILLEQ =TBILLPRICE(settlement,maturity,discount) 
04012018(April 01,2018) 
09302018(Sept 30, 2018) 
7.30% 
=TBILLPRICE(04012018,09302018,7.30%) =96.30944444 = 96.31 [Estimated Market value of Bond)

47)
TBILLYIELD :– TBILLYIELD function is helpful in calculating the yield on a Treasury bill when we are given the start date, end date, and price.
Syntax
=TBILLYIELD(settlement, maturity, pr)
 Settlement (required argument) – This is the settlement date of the Treasury bill. The security’s settlement date is the date after the issue date when the Tbill is traded to the buyer.
 Maturity (required argument) – This is the Tbill’s maturity date. The maturity date is the date when the Tbill is matured
 Pr (required argument) – The Tbill’s (Treasury Bill) price per $100 face value.
Eg:
Settlement Date 
Maturity Date 
Price per face value 
TBILLYIELD =TBILLYIELD(settlement,maturity,pr) 
04012018(April 01,2018) 
09302018(Sept 30, 2018) 
98.5 
=TBILLYIELD(04012018,09302018, 98.5) =0.030122162 =0.030122162*100 =3.01% 
Mathematical formula
TBILLYIELD=
100pr———————————————i
———
Pr
360/DSM —————————————ii
TBILLYIELD= i*ii
Pr=98.5
10098.5/98.5= 1.5/98.5= 0.015228—– i
360/DSM = 360/176 ——–ii
TBILLYIELD = i*ii = 0.015228*2.046 = 3.1% [equivalent result to the Excel function)
48)
VDB—It is also called variable declining balance. This financial function calculates the depreciation of an asset using the Double Declining Balance (DDB) method or another method specified by changing the factor argument.
It also allows us to specify a factor to multiply the StraightLine Depreciation by, although the function uses the DDB method by default. It will help a financial analyst in building financial models or creating a fixed asset depreciation schedule for analysis.
Syntax
=VDB(cost, salvage, life, start_period, end_period, [factor], [no_switch])
 Cost (required argument) – This is the initial cost (original cost) of the asset.
 Salvage (required argument) – This is the value of an asset at the end of the depreciation. It can be zero. It is also known as the salvage value.
 Life (required argument) – This is the useful life of the asset or the number of periods for which the asset will be depreciated.
 Start_period (required argument) – The starting period for which you want to calculate the depreciation. Start_period must use the same units as life.
 End_period (required argument) – This is the ending period for which you want to calculate the depreciation. End_period must use the same units as life.
 Factor (optional argument) – This is the rate of depreciation. If we omit the argument, the function will take the default value of 2, which denotes the double declining balance method.
 No_switch – This is an optional logical argument that specifies whether the method should switch to straightline depreciation when depreciation is greater than the declining balance calculation. Possible values are:
TRUE –Excel will not switch to the straightline depreciation method
FALSE – Excel will switch to the straightline depreciation method when depreciation is greater than the declining balance calculation.
Eg:
Cost of Bike 
Life (Total yrs) 
Salvage Value 
Period (Yrs) 
VDB =VDB(cost, salvage, life, start_period, end_period, [factor], [no_switch]) 
100000 
3 yrs 
10000 
1 
=VDB(100000,10000,3,0,1) =66666.67 (Price depreciated to 66666.67 between 0 to 1 year) 
2 
=VDB(100000,10000,3,1,2) =22222.22 (Price depreciated to 22222.22 between 1 to 2 years) 

3 
=VDB(100000,10000,3,2,3) =1111.11 (Price depreciated to 1111.11 between 2 to 3 years) 
If you calculate the Total VDB value ( 66666.67+22222.22+1111.11) = you will get 90000
Salvage value = 10000090000 = Rs. 10000/