PPMT Function
using Excel 2003
I have taken the following from the Excel Help. I cannot Understand exactly
how this function works.
10% Annual interest
1 Period for which you want to find the interest
3 Years of loan
8,000.00 Present value of loan
-2,000 FV
0 Type (payments at end of period)
the results for each of the periods are as follows
-ぎ1,983.43 period 1
-ぎ1,999.95 period 2
-ぎ2,016.62 period 3
-ぎ6,000.00 Total repayment principal - which is correct
If I change the type to 1 (payments in advance) the total amounts are
-ぎ2,033.15 period 1
-ぎ1,983.43 period 2
-ぎ1,999.95 period 3
-ぎ6,016.53 Total repayment principal - This cannot be correct !!!!!
What am i doing wrong???
What about the IPMT Function. Would this have the same error??
Many thanks in advance for all help/sgl
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