Calculates the periodic amortizement for an investment with regular payments and a constant interest rate.
IPMT(Rate; Period; NPer; PV; FV; Type)
Rate is the periodic interest rate.
Period is the period, for which the compound interest is calculated. Period=Nper if compound interest for the last period is calculated.
NPer is the total number of periods, during which annuity is paid.
PV is the present cash value in sequence of payments.
FV (optional) is the desired value (future value) at the end of the periods.
Type is the due date for the periodic payments.
What is the interest rate during the fifth period (year) if the constant interest rate is 5% and the cash value is 15,000 currency units? The periodic payment is seven years.
=IPMT(5%;5;7;15000) = -352.97 currency units. The compound interest during the fifth period (year) is 352.97 currency units.