CUMIPMT Function
Returns the cumulative interest paid on a loan between the start and end period.
| Categories: | Financial |
| CAS |
Syntax
Required Arguments
rate
specifies the interest rate per payment period.
number-of-periods
specifies the number of payment periods. Number-of-periods must be a positive integer value.
principal-amount
specifies the principal amount of the loan. A value of 0 is assumed if a missing value is specified.
Optional Arguments
start-period
specifies the start period for the calculation.
end-period
specifies the end period for the calculation.
type
specifies whether the payments occur at the beginning or end of a period. A value of 0 represents the end-of-period payments, and 1 represents the beginning-of-period payments. If type is omitted or if a missing value is specified, 0 is assumed.
Example
-
The cumulative interest that is paid during the second year of a $125,000 30-year loan with end-of-period monthly payments and a nominal annual interest rate of 9% is computed as follows:
TotalInterest=CUMIPMT(0.09/12, 360, 125000, 13, 24, 0);
This computation returns a value of 11,135.23. -
The interest that is paid on the first period of the same loan is computed as follows:
first_period_interest=CUMIPMT(0.09/12, 360, 125000, 1, 1, 0);
This computation returns a value of 937.50.