The CUMIPMT function
The =-CUMIPMT(C3/12,C4,C5,1,C4,0) formula in cell C7 of Figure 6.1 returns 2,771.26 as the interest due on a loan of $25,000 paid off over four years at an interest rate of 5.25%.
The CUMIMPT function has six required arguments:
- Rate: The interest rate for the loan, which, in this case, is 5.25% from cell C3 divided by 12 to create a monthly interest rate.
- Nper: The number of periods in the loan, which, in this case, is 4 years from cell C4 multiplied by 12 or 48 months.
- Pv: This argument name is short for present value, since money loses value over time, but is also known as the loan amount or principal from cell C5, which, in this case, is $25,000.
- Start_period: The period number within the loan to start calculating the interest due—this is not a date, but a period number, for instance,
1to represent the first period in the loan. - End_period: The period number through which to calculate the interest amount, which, in this case...
