Access tutorial 10.7 supplementary content 4: IPmt Functions

IPmt (rate, per, nper, pv [, fv [, type]) returns a Double, specifies the value of interest paid for an annuities with fixed interest rates for a period of time. Rate is required. Double specifies the interest rate for each period. For example, if there is a loan for a car loan with a yearly percentage (APR) of 10 and a monthly payment, then the profit of each phase

IPmt (rate, per, nper, pv [, fv [, type]) returns a Double, specifies the value of interest paid for an annuities with fixed interest rates for a period of time. Rate is required. Double specifies the interest rate for each period. For example, if there is a loan for a car loan with a yearly percentage (APR) of 10 and a monthly payment, then the profit of each phase

IPmt (rate, per, nper, pv [, fv [, type])

Returns a Double value that specifies the value of interest paid for an annuities with fixed rates for a period of time.

Rate is required. Double specifies the interest rate for each period. For example, if there is a loan for a car loan with a yearly percentage (APR) of 10 and a monthly payment, the interest rate for each phase is 0.1/12, or 0.0083.

Per is required. Double specifies the payment cycle in the range of nper 1.

Nper is required. Double specifies the total number of payment periods for an annuity. For example, if you select a monthly payment option for a four-year auto loan, the loan has a total of 4*12 (or 48) payment periods.

Pv is required. Double specifies the present value of a series of future payments or collections. For example, when borrowing money to buy a car, the amount lent to the credit is the current value of the amount payable to the credit in the next month.

Fv is optional. Variant specifies the expected future value or cash deposit after the loan is paid. For example, the future value of a loan is 0 USD after the loan is paid. However, if you want to save $50,000 for the past 18 years as the Children's Education Fund, then $50,000 will be worth the future. If omitted, the default value is 0.

Type is optional. Variant specifies the loan expiration time. If the loan expires at the end of the loan cycle, use 0. If the loan expires at the beginning of the cycle, use 1. If omitted, the default value is 0.

Note: annuities refer to a series of fixed cash payments within a period of time. An annuity can be a loan (such as a mortgage loan) or an investment (such as a monthly savings plan ). The rate and nper parameters must be calculated in the same unit during the payment period. For example, if rate is calculated by month, nper must also be calculated by month. For all parameters, a negative number indicates cash expenditure (such as savings and deposits), and a positive number indicates cash income (such as a dividend check ).