Manuals/calci/ISPMT

ISPMT(r,pe,np,pv)

Description

This function calculates the interest paid, during a specific period of a loan or investment.
In $ISPMT(r,pe,np,pv)$ , $r$ 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.
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.