PMT {DescTools}

Periodic Payment of an Annuity.

Description

PMT computes the periodic payment of an annuity. IPMT calculates what portion of a period payment is going towards interest in a particular period and PPMT what portion of a period payment is going towards principal in a particular period. RBAL yields the remaining balance in a particular period.

Usage

PMT(rate, nper, pv, fv = 0, type = 0)
IPMT(rate, per, nper, pv, fv = 0, type = 0)
PPMT(rate, per, nper, pv, fv = 0, type = 0)
RBAL(rate, per, nper, pv, fv = 0, type = 0)

Arguments

rate

specifies the interest rate.

per

specifies the period of the payment to be applied to interest or to principal.

nper

specifies the number of payment periods.

pv

specifies the present value or the lump-sum amount that a series of future payments is worth currently. pv can be 0 if a positive fv argument is included.

fv

specifies the future value or a cash balance that you want to attain after the last payment is made. Default is 0.

type

specifies the number 0 or 1 and indicates when payments are due. Default is 0.

Value

a numeric value

Author(s)

Andri Signorell <[e-mail]>

See Also

NPV, SLN

Examples

# original principal:    20'000
# loan term (years):     5
# annual interest rate:  8%
# annual payment:        -4'156.847

# simple amortization schedule
cbind(
  year      = 1:5,
  payment   = PMT(rate=0.08, nper=5, pv=20000, fv=-5000, type=0),
  interest  = IPMT(rate=0.08, per=1:5, nper=5, pv=20000, fv=-5000, type=0),
  principal = PPMT(rate=0.08, per=1:5, nper=5, pv=20000, fv=-5000, type=0),
  balance   = RBAL(rate=0.08, per=1:5, nper=5, pv=20000, fv=-5000, type=0)
)

#     year   payment   interest principal   balance
# [1,]    1 -4156.847 -1600.0000 -2556.847 17443.153
# [2,]    2 -4156.847 -1395.4523 -2761.395 14681.759
# [3,]    3 -4156.847 -1174.5407 -2982.306 11699.452
# [4,]    4 -4156.847  -935.9562 -3220.891  8478.562
# [5,]    5 -4156.847  -678.2849 -3478.562  5000.000