A B C D E F G H

1 rate payment
2 PMT,PPMT,IPMT Functions months end of month
3 CUMPRINC CUMIPMT loan amount
4
5 Beginning Monthly Ending
Time balance Payment Principal Interest Balance
6 1
7 2
8 3
9 4
10 5
11 6
12 7
13 8
14 9
15 10
16
17 NPV of payments
18 cum int months 2-4 cumprinc months 2-4

payment
19
beginning of each
month

20 monthly payment if
we make $1000
ending payment
 A
1
2 PMT
Pay
$3000 for
3 5 years
end of
year
Pay
$3000 for
4 5 years
beginning
of year

Extra
$500
payment
5 end of
year
5;end of
year
payments
BORROWING $80,000
120 MONTHLY PAYMENTS OF $1000 PER MONTH
WHAT IS MAX RATE YOU CAN HANDLE? CHECK!
### =RATE(120,-1000,80000,0,0) $80,000.08 =PV(0.007241,120,-1000,
IF YOU CAN PAY $10,000 AT END
WHAT IS MAX RATE YOU CAN HANDLE?
=PV(0.007241,120,-1000,0,0)
 Borrow $100000 8%
ANNUAL PAYMENTS OF $10,000 PER YEAR
END OF YEAR PAYMENT
HOW MANY YEARS?

20 YEARS WILL NOT PAY IT OFF; 21 WILL

CHECK
20 YEARS $98,181.47
21 YEARS $100,168.03

IF WE PAY $40,000 AT END OF PROBLEM

15 YEARS WILL NOT PAY IT OFF; 16 YEARS WILL

 A
1
2 FV
Invest
$2000
3 end of
year for
40 years
Invest
$2000
beginning
4 of year
for 40
years

We start
with
$30000
and
5 invest
$2000
per year
at end of
year for
40 years