Basics of Financial Modelling
Half Mapped
What's better than understanding the real concepts of Financial Modelling from someone who has actual real time experience.
Blog Dedicated to Ritik Prasad, thanks for teaching this.
Concept 1
Can you find out the Repayment amount?
The first thing I learned is you have to create a system rather than just a working financials which needs to be manually changed by going on different cells.
To do that we have to create a system of things here's the Example :
So the Given data as a excercise was that we have a Loan of ₹ 500 and Interest of 10% where we have to repay ₹ 40 per year, as calculated 500/40=12.5, and moratorium is of 2 years.
But we will calculate first without moratorium.
After the 2nd year I have just dragged the formula, if you have question why I have taken 15 yrs ? Because 12.5 yrs was coming as per my calculation above + 2yrs of Moratorium comes 14.5 = ~15.
Now with Moratorium :
Calculation :
Now if I change the Loan Amount or Interest Rate or Repayment or Moratorium the whole thing will change on it's own !
Just number of years need to be dragged with formulas as simple as it could be.
