Difference between revisions of "Manuals/calci/ISPMT"
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==Description== | ==Description== | ||
*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 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. | + | *In <math>ISPMT(r,pe,np,pv)</math>, <math>r</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>r</math> 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. | + | *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. |
| − | *pe indicates the period and it is lying with in 1 to nper. | + | *<math>pe</math> indicates the period and it is lying with in 1 to nper. |
| − | *np is the total number of payment periods in an annuity. | + | *<math>np</math> 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. | + | *<math>pv</math> 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. | *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. | *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. | *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 | *This function give result as error when | ||
Any one of the arguments are not recognised as numeric values. | Any one of the arguments are not recognised as numeric values. | ||
| − | |||
==Examples== | ==Examples== | ||
Revision as of 04:16, 14 March 2014
ISPMT(r,pe,np,pv)
- is the interest rate.
- is the period.
- is the total number of payment periods.
- is the at present value.
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
- =ISPMT(9.75%/12,1,5*12,500000) = -3994.791667
- =ISPMT(9%,2,4,350000) = -15750
- =ISPMT(9%/12,3,4*12,350000) = -2460.9375