How to use IPMT and PPMT to compute Interest and Investment payment, says, at
10 months period.
Thanks
How to use IPMT and PPMT to compute Interest and Investment payment, says, at
10 months period.
Thanks
hi,
you basicly have to create a table because both formulas key on balance due
and balance due drops with each payment so each month requires a new
calculation based on balance due.
the sentax and examples are in xl help.
regards
FSt1
"William" wrote:
> How to use IPMT and PPMT to compute Interest and Investment payment, says, at
> 10 months period.
>
> Thanks
I had tried to use IPMT to find interest earned in each of the quarters for a
given future value, but the sum of all interests earned (IPMT) for all the
quarters is not equal to Sum of PPMT minus Total PMT.
Example,
FV 5000
rate 2.50%
Years 1
IPMT PPMT pmt
1 $0.00 $1,238.34 $1,230.65
2 $7.74 $1,246.08 $1,230.65
3 $15.53 $1,253.87 $1,230.65
4 $23.36 $1,261.71 $1,230.65
Sum: $46.63 $5,000.00 $4,922.60
$5000.00 - $4922.60= $77.40
Sum of IPMT should have been $77.40.
There is difference of $77.40 - $ 46.63 = $30.77
Why? Did I wrong somewhere?
"FSt1" wrote:
> hi,
> you basicly have to create a table because both formulas key on balance due
> and balance due drops with each payment so each month requires a new
> calculation based on balance due.
> the sentax and examples are in xl help.
>
> regards
> FSt1
>
> "William" wrote:
>
> > How to use IPMT and PPMT to compute Interest and Investment payment, says, at
> > 10 months period.
> >
> > Thanks
There are currently 1 users browsing this thread. (0 members and 1 guests)
Bookmarks