The financial functions of Excel are important in operations ranging from calculating rental prices to analyzing business conditions. Therefore, today you will learn **how to use the Excel financial function INT.ACUM.V – step by step**

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## What is the INT.ACUM.V function?

The INT.ACUM.V function is a formula offered by Microsoft Office Excel and is part of the **financial functions** . However, it is important to note that we can use additional tools to solve other mathematical operations in Excel. This function allows you to calculate the performance of securities or financial assets that have interest payments at maturity.

### Items that are included for calculation using the INT.ACUM.V function

According to a mathematical financial formula, it is possible to obtain the **total interest** taking into account the nominal value of the security (Cn), the discount rate (d), the number of days from the settlement date to the maturity date (n) and an annual basis based on 360 or 365 days (B). Therefore it is represented by the product of Cn, d and n divided by the annual base B.

## How to use the Excel financial function INT.ACUM.V – step by step

In order to use the Excel financial function INT.ACUM.V you need to know its syntax, the **attributes of its arguments** and how to apply this tool through an exemplification that we will present below.

### What is the syntax of the INT.ACUM.V function?

The INT.ACUM.V function in Excel has a syntax made up of five arguments, so its formula must be expressed as follows: = INT.ACUM.V (issue; settlement; rate; even; base). The only **optional argument** is “base” while all the others are required.

### The mandatory arguments

Among the **mandatory arguments** is “broadcast”. This refers to the date on which the title of the asset is issued by the agency. The “settlement” is the expiration date of the title when the interest that has occurred is settled.

For its part, the argument “rate” is linked to the nominal interest rate of the security and “par” is the nominal monetary value of the security.

### The optional argument

The optional argument is “base” and refers to a number that goes from 0 to 4. Each one indicates the **base to count the days** which can be 30/360 (American), Real / real, Real / 360, Real / 365 or 30/360 (European). If this value is not specified, the base is assumed to be 0 or default to 30/360 (American)

### How to use the INT.ACUM.V function

Suppose that a company wants to know the interest that the bank will obtain after discounting a bill of exchange on November 20, 2019 whose maturity will be December 30, 2019. The nominal value is 2000 euros and a discount of 5% is applied .

If base 2 is chosen, that is, Real / 360 for the calculation of interest, the formula will be = INT.ACUM.V (DATE (2020; 11; 20); DATE (2020; 12; 30); 5; 2000; 2). A decimal value related to the **accrued interest will be obtained** for a security under the payment of interest due to maturity.

### Important things to consider

It is important to mention that if the argument “issuance” has a value equal to “settlement”, the result of the formula will be #NUM !, likewise, if the argument “base” is less than 0, it is issued as a result #NUM! .

On the other hand, the arguments “issuance” and “settlement” must have **date format** . If you enter the values manually, be sure to use the DATE (year, month, day) function. If you don’t enter valid dates, you will get #VALUE! rather than an actual value for the accrued interest.

### Can the argument “even” be optional?

Indeed, the argument “Par” or nominal value of the asset can be optional. In case it is omitted in the formula, Excel will assign the value of $ 1000 as “even”. Therefore, you must be extremely careful when **specifying each argument** .

For this reason, we recommend that you learn how to use Excel formulas so that you can get the most out of this Microsoft application.

Although there are limitations, with Office Online you can access some of the options shown above. A valid option if you don’t have the software.