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How to use IPMT and PPMT to compute Interest and Investment paymen

  1. #1
    William
    Guest

    How to use IPMT and PPMT to compute Interest and Investment paymen

    How to use IPMT and PPMT to compute Interest and Investment payment, says, at
    10 months period.

    Thanks

  2. #2
    FSt1
    Guest

    RE: How to use IPMT and PPMT to compute Interest and Investment paymen

    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


  3. #3
    William
    Guest

    RE: How to use IPMT and PPMT to compute Interest and Investment pa

    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


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