Manuals/calci/IPMT

IPMT(rate,period,no.paymentperiods,presentvalue,futurevalue,Type)

• $rate$ is the annual rate of interest.
• $periods$ is the period of to find the interest rate.
• $no.paymentperiods$ is the number of installments.
• $presentvalue$ is the present value.
• $futurevalue$ is the future value.
• $Type$ is either 1 or 0.

Description

• This function gives amount of interest for a particular time, according to the periodic, fixed payments and fixed interest rate.
• This function can be used to calculate the payments for a loan or the future value of an investment.
• In $IPMT(rate,period,no.paymentperiods,presentvalue,futurevalue,Type)$, where $rate$ is the rate of interest for a year
• $period$ is the period for which the interest payment is to be calculated. It must be a value between $1$ and $np$.
• $no.paymentperiods$ is the total number of periods over which the loan or investment is to be paid.
• $presentvalue$ is the present value of the loan.
• $futurevalue$ is the future value of the loan, at the end of $np$ payment.
• $Type$ is the number $0$ or $1$.
• When type value is $0$ means the payment is made at the end of the period and type value is $1$ means the payment is made at the beginning of the period
• Here the arguments $futurevalue$ and $Type$ are optional.
• Suppose we omit the value of $futurevalue$, then it will consider the value as $0$.
• Also when we are not giving the $Type$ value, the default value is $0$.
• Suppose we calculate the monthly payments instead of annual payment, for the argument $rate$ we have to divide by $12$ and the $np$ value we have multiply with $12$.
• For e.g. The monthly payments on a 5 year loan at 10% annual interest, we have to give the arguments $rate$ and $np$ as 10%/12 for $rate$ and 5*12 for $no.paymentperiods$.
• This function will give result as error when

Any one of the argument is non-numeric
$period<0$ or $period>no.paymentperiods$

ZOS Section

• The syntax is to calculate amount of interest for a particular time in ZOS is $IPMT(rate,period,no.paymentperiods,presentvalue,futurevalue,Type)$
  • $rate$ is the annual rate of interest.
  • $periods$ is the period of to find the interest rate.
  • $no.paymentperiods$ is the number of installments.
  • $presentvalue$ is the present value.
  • $futurevalue$ is the future value.
  • $Type$ is either 1 or 0.
• For e.g.,

Examples

• 1.Calculate the interest payment during half yearly 1 and 2 of a loan for 50,000, that is to be reduced to 10,000 over a period of 3 years, by a series of constant half-yearly payments.
• Interest is charged at a rate of 4.5% per year and the payment is made at the beginning of each half year.
• IPMT(4.5%/2,3,2*2,50000,10000,1)= -480.666
• 2.The interest payment for a $55000 investment that earns 7.50% annually for 15 years.
• The interest payment is calculated for the 5th year and payments are due at the end of each year.

IPMT(7.5%/1, 5, 15*1, 55000)=-3418.570

See Also

• PMT
• PPMT
• IPMT

References

Binary Logarithm