Still celebrating National IT Professionals Day with 3 months of free Premium Membership. Use Code ITDAY17

x
?
Solved

Ipmt function

Posted on 2016-08-20
7
Medium Priority
?
99 Views
Last Modified: 2016-08-21
Hello,

I am interested in knowing how to enter the variables in excels ipmt function for a 41 day period if given an annual rate.
Please see attached spreadsheet.  There are some calculations for a 1 month time frame and i am interested in the 41 day period and calculating according to the ipmt function.


thank you
InterestEE.xlsx
0
Comment
Question by:pdvsa
[X]
Welcome to Experts Exchange

Add your voice to the tech community where 5M+ people just like you are talking about what matters.

  • Help others & share knowledge
  • Earn cash & points
  • Learn & ask questions
  • 3
  • 3
7 Comments
 
LVL 1

Expert Comment

by:Menash H
ID: 41763716
heya,
its more of a financial question than an Excel one.
this furmula is calculating the spitzer loan amortisation.
with this loan type, the interest is calculated for the whole period between payment to payment.
the interest is a division of the annual interest by he number of payments in the annum.
you can calculate the first 30 days, with the formula, and then divide the additional 11 days by 30, and multiply it by the periodical interest and the residual amount due.
usually, the spitzer is accounted as a 30/360 days a month in a year.
you have to check the regional conventions and the business terms.
cheers,
Menash
0
 

Author Comment

by:pdvsa
ID: 41763765
would you agree the formula then would be
Prin*rate*(41/360) = interest for 41 days?
0
 
LVL 11

Expert Comment

by:Wilder1626
ID: 41763821
pdvsa

You may want to look at this link: https://web.iit.edu/sites/web/files/departments/academic-affairs/academic-resource-center/pdfs/PMT_IPMT_PPMT.pdf

This may guide you on what you are trying to do on pages 11,12 and 13 (including the cover page in the page count)
0
Concerto's Cloud Advisory Services

Want to avoid the missteps to gaining all the benefits of the cloud? Learn more about the different assessment options from our Cloud Advisory team.

 
LVL 1

Expert Comment

by:Menash H
ID: 41764029
maybe, but...
in terms of a loan taken on the 21/12/2016 and returned 31/12/2017, the fractional month should be calculated first, as a grace period, in which no principle payments are done, there is only the interest paid for the lot, then, run the spitzer calc and compute the returns.
the initial interest for the first 11 days is added to the loan first principle and interest payment.
again, the rules vary by the region's convention and the agreement.
0
 

Author Comment

by:pdvsa
ID: 41764041
The names are not important to me.  My question is how to use ipmt.  Please what is your formula (not words) for such question.
0
 
LVL 1

Accepted Solution

by:
Menash H earned 2000 total points
ID: 41764107
you have to read the words in order to understand.
starting 21/12/16 to 31/12/216 :
29000000*1.895/12*11/30  for the interest only.
then use the pmt and ipmt for whole months,

other than that, this is not spitzer amortisation, and if its not, you cant use the ipmt in your case.
if the payment is on the 21 of each month, so on the 21/01/2017 you have paid all principle and interest, so there is 0 to calculate.
0
 

Author Closing Comment

by:pdvsa
ID: 41764465
Thank you...
0

Featured Post

Free Tool: Site Down Detector

Helpful to verify reports of your own downtime, or to double check a downed website you are trying to access.

One of a set of tools we are providing to everyone as a way of saying thank you for being a part of the community.

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

After seeing numerous questions for Dynamic Data Validation I notice that most have used Visual Basic to solve the problem. This suggestion is purely formula based and can be used in multiple rows.
If you need to forecast numbers -- typically for finance -- the Windows and Mac versions of Excel 2016 have a basket of tools to get the job done.
The viewer will learn how to create two correlated normally distributed random variables in Excel, use a normal distribution to simulate the return on different levels of investment in each of the two funds over a period of ten years, and, create a …
This Micro Tutorial demonstrates how to create Excel charts: column, area, line, bar, and scatter charts. Formatting tips are provided as well.

688 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question