Formulas and Functions

Table Of Contents

Â when-due: An optional argument that species whether payments are due at the

beginning or end of each period. Most mortgage and other loans require the rst

payment at the end of the rst period (0), which is the default. Most lease and rent

payments, and some other types of payments, are due at the beginning of each

period (1).

end (0 or omitted): Payments are due at the end of each period.

beginning (1): Payments are due at the beginning of each period.

Example

In this example, IPMT is used to determine the interest portion of the rst payment of the third

year of the loan term (payment 25) given the loan facts presented. The function evaluates to

approximately –$922.41 representing the interest portion of loan payment 25.

periodic-rate period num-periods present-value future-value when-due

=IPMT(B2, C2,

D2, E2, F2, G2)

=0.06/12 25 =10*12 200000 -100000 0