September 2011
Beginner
140 pages
3h 40m
English
The IPMT function returns the amount of interest that you need to pay in a given accounting period when you borrow a certain amount of money (loan) for a specified length of time. For example, if you borrow $1,000,000 at an interest rate of 7.25% for 25 years and want to know how much interest you have to pay back within the first month, you can find that out with this formula:
=IPMT(7.25%/12; 1; 25*12; 1,000,000)
The answer is –$6041.67.
Figure 8-6. Sample result of the IPMT function
The period argument specifies for which accounting period the interest is going to ...
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