Ipmt function
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IPMT function in Excel calculates the interest payment for an investment based on the interest rate and payment schedule. It requires the interest rate, period, number of payments, present value, and optional future value. The IPMT function is useful as it simplifies calculating interest payments for users like customers, investors, and managers. To use it, the user enters the relevant interest and payment details into the IPMT formula.
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Ipmt function
- 1. IPMT Function Microsoft Excel 01/19/11 Mostafa Amine Kahwaji Instructor: Amina Maarouf 31030902 Introduction To Computers
- 2. What is IPMT function? In Excel, the IPmt function returns the interest payment for an investment based on an interest rate and a constant payment schedule. The syntax for the IPmt function is: IPmt( interest_rate, period, number_payments, PV, FV, Type ) interest_rate is the interest rate for the investment. period is the period to calculate the interest rate. It must be a value between 1 and number_payments. number_payments is the number of payments for the annuity. PV is the present value of the payments. FV is optional. It is the future value that you'd like the investment to be after all payments have been made. If this parameter is omitted, the IPmt function will assume a FV of 0.
- 3. Why is IPMT useful ? IPMT function in excel is like a shortcut for the user “customer,invester,manager” IPMT function manages user’s account from a loan to a payment
- 4. How to use it ?