Due to the fact that the balloon payment loan

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Unformatted text preview: column H on the “Loan” worksheet of the “Loan” data file in column H. However, no balloon payment data can be input on this worksheet. Interest Payment The payment to interest of a loan payment for a period can be determined by the “IPMT” (Payment To Interest ) formula of Excel. The dialog box for this formula is very similar to the data entry windows for the “PMT” (Payment) function detailed earlier except that “IPMT” asks for the period that you want the payment to interest for. This can be period 1, period 2, period 40, or any other applicable period within the range of the loan for the loan example. In the “Loan” data file, the period is defined in column A. The output value is under the same logic as “PMT” – if the principle is positive, the payment will be negative, if the principle is negative, the payment will be positive indicating cash flows in and out. This formula is contained within column E of the “Loan” and “Balloon Payment Loan” matrix in the “Loan” data file. The “If” statement determines if the period is applicable to the loan. If the period is not relevant to the loan, the “If” statement returns the null value for a clean and clear presentation. If the period is applicable, the “IPMT” formula looks to the input data through absolute reference to attain the values for the “IPMT” formula. Examine the “Loan” data file to see an example of how a loan table can be constructed incorporating this formula. The “IPMT” formula will assist you in determining how much of a loan payment will be the interest cost value associated with the loan with the payment. Cumulative Payment To Interest The “CUMIPMT” (Cumulative Payment to Interest) formula will generate the interest for a range of periods rather than one specific period. Its dialog box is very similar to the “CUMPRINC” (Cumulative Payment To Principle) discussed earlier. As with the “CUMPRINC” (Cumulative Payment To Principle) formula, this formula does not take balloon payments into account. Due to the fact that the “Balloon Payment Loan” worksheet was constructed to take balloon payments into account, this formula was not usable in tha...
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