Manuals/calci/PPMT

PPMT(r,pe,np,pv,fv,ty)

• $r$ is the interest rate.
• $pe$ is the period.
• $np$ is the total number of payment periods.
• $pv$ is the at present value.
• $fv$ is the future value.
• $ty$ is the type.

Description

• This function gives the payment on the principal for a given period.
• It is based on the period, fixed payments and a fixed interest rate.
• This function calculates payment for an investment or a loan with the assumption of constant payments at regular intervals and a fixed interest rate.
• In $PPMT(r,pe,np,pv,fv,ty)$, $r$ 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 $r$ value is 8%/12. So we have to enter the $r$ value as 8%/12 or 0.6667% or 0.006667 in to the formula as the rate.
• $pe$ indicates the period and it is lying with in 1 to nper.
• $np$ is the total number of payment periods in an annuity.
• $pv$ is the present value-the total amount that a series of future payments is worth now.
• $fv$ is the future value of an investment or loan (the value you want to achieve at the end of all periods) when we are omitting the value of $fv$ ,then it is assumed to be 0.
• $ty$ is the number 0 or 1 which is specifies the time to make a payment during the period.
• when we are not giving the value of $ty$, then it is assumed to be 0.

ty value	Explanation
0	Payments are due at the end of the period
1	Payments are due at the beginning of the period

• The interest rate is divided by 12 to get a monthly rate.
• The number of years the money is paid out is multiplied by 12 to get the number of payments.

Examples

1. PPMT(11%/12,1,5*12,50000) = -628.78782029
2. PPMT(8%/12,1,4*12,10000,1000,0) = -195.208812423
3. PPMT(8%/12,1,4*12,10000,1000,1) = -260.14120439390365

Related Videos

PPMT

See Also

• FV
• IPMT
• PMT
• PV

References

• Ppmt

• List of Main Z Functions

• Z3 home