Unlocking Financial Efficiency: A Practical Guide to Using Google Spreadsheets for Future Value and Amortized Loan Calculations

Abstract

The paper addresses the use of spreadsheets to determine the future value (FV) of amortized loans and simple annuities, two components of time value of money calculations. This paper uses a library research approach with the main data from the book Financial Management: Principles and Applications by Titman et al (2018). The methods for calculating future value in this paper can be used to determine interest rates on loans and long-term investments. Moreover, this paper also discusses the amortized loan as a calculation of repayment process to a debt that is carried out periodically to end of the term. This paper contributes to provide an open-access Google spreadsheet that can be freely utilized by the public to facilitate future value and annuity payment calculations. Financial computations become more efficient and user-friendly, as users may modify the input data as needed, and the spreadsheet produces instantaneous results.