Manuals/calci/IPMT

IPMT(r,pr,np,pv,fv,type)

• $r$ is the annual rate of interest.
• $pr$ is the period of to find the interest rate.
• $np$ is the number of installments.
• $pv$ is the present value.
• $fv$ 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(r,pr,np,pv,fv,type) , where r is the rate of interest for a year, pr is the period for which the interest payment is to be calculated.
• It must be a value between 1 and np.np is the total number of periods over which the loan or investment is to be paid, pv is the present value of the loan,fv 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 fv and type are optional.
• Suppose we are omitted the value of fv , then it will consider the value as '0'.
• Also when we are not giving the type value, the default value is '0'.
• Suppose we calculating the monthly payments instead of annual payment, for the argument r we have to divede 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 interst, we have to give the arguments r and np as 10%/12 for r and 5*12 for np.
• This function will give result as error when

1. Any one of the argument is nonnumeric
2. pr < 0 or pr > np

Examples

• 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 halfyearly payments.
• Interest is charged at a rate of 4.5% per year and the payment is made at the beginning of each halfyearly.
• IPMT(4.5%/2,3,2*2,50000,10000,1)=-454.78 (EXCEL)=-480.666(CALCI)

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

References

Bessel Function