Difference between revisions of "Manuals/calci/ISPMT"

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*This function calculates the interest paid, during a specific period of a loan or investment.
 
*This function calculates the interest paid, during a specific period of a loan or investment.
 
*In <math>ISPMT (Rate,Period,NoOfPaymentPeriods,PresentValue)</math>, <math>Rate</math> is the rate of interest for the period.Suppose we are taking  a loan for 8 percent annual interest rate and paying the amount in monthly, then the <math>Rate</math> value is 8%/12.  
 
*In <math>ISPMT (Rate,Period,NoOfPaymentPeriods,PresentValue)</math>, <math>Rate</math> is the rate of interest for the period.Suppose we are taking  a loan for 8 percent annual interest rate and paying the amount in monthly, then the <math>Rate</math> value is 8%/12.  
*So we have to enter the <math>r</math> value as  8%/12 or 0.6667% or 0.006667 in to the formula as the rate.
+
*So we have to enter the <math>Rate</math> value as  8%/12 or 0.6667% or 0.006667 in to the formula as the rate.
 
*<math>Period</math> indicates the period and it is lying with in 1 to nper.
 
*<math>Period</math> indicates the period and it is lying with in 1 to nper.
 
*<math>NoOfPaymentPeriods</math> is the total number of payment periods in an annuity.
 
*<math>NoOfPaymentPeriods</math> is the total number of payment periods in an annuity.

Revision as of 18:03, 23 July 2018

ISPMT (Rate,Period,NoOfPaymentPeriods,PresentValue)


  • is the interest rate.
  • is the period.
  • is the total number of payment periods.
  • is the at present value.

Description

  • This function calculates the interest paid, during a specific period of a loan or investment.
  • In , is the rate of interest for the period.Suppose we are taking a loan for 8 percent annual interest rate and paying the amount in monthly, then the value is 8%/12.
  • So we have to enter the value as 8%/12 or 0.6667% or 0.006667 in to the formula as the rate.
  • indicates the period and it is lying with in 1 to nper.
  • is the total number of payment periods in an annuity.
  • is the present value-the total amount that a series of future payments is worth now.
  • The arguments rate and the nper are expressed in the correct units.
  months = 12 * years; monthly rate = annual rate / 12 
  quarters = 4 * years; quarterly rate = annual rate / 4 . 
  • The returned values are negative which is representing the cash we pay out like deposits to savings or other withdrawals.
  • Also the returned values are positive which is representing the cash we receive like dividend checks and other deposits.
  • This function give result as error when
       Any one  of the arguments are not recognised as numeric values.

Examples

  1. =ISPMT(9.75%/12,1,5*12,500000) = -3994.791667
  2. =ISPMT(9%,2,4,350000) = -15750
  3. =ISPMT(9%/12,3,4*12,350000) = -2460.9375

Related Videos

ISPMT

See Also

References