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# PPMT

Syntax: PPMT(R, P, NP, PV, FV[, T])

R = interest rate per period
P = the period for which the interest will be calculated
NP = the total number of payment periods
PV = present value of the investment
FV = future value or a cash balance you would like to attain at the end of the last period
T = (Optional) timing of the payment:

 0 payment is made at the end of the period 1 payment is made at the beginning of the period

PPMT returns the payment on the principal for a specific period for an investment based on periodic, constant payments and a constant interest rate.

Make sure the units used be R and NP are consistent. For example, for a 5 year loan with 12% annual interest, if you make payment monthly, use 12%/12 for (monthly) R and 5*12 for NP. If you make annual payment on the same loan, use 12% for R and 5 for NP.

Examples:

PPMT(10%/12, 1, 60, 55000, 0, 0) = 710.2541

PPMT(10%/12, 1, 60, 55000, 1000) = 723.1678

Excel function: N/A

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