PAYMENT Function

Syntax

Payment_Amount as N = PAYMENT(N loan_amount,N periodic_interest_rate,N payment_periods)

Arguments

loan_amount: Amount of the loan amount, which can be positive or negative. Fractional Loan_Amount values are rounded off to the nearest integer. Numeric
periodic_interest_rate: Interest rate per time period. Must be a positive number. Numeric
payment_periods: Number of time periods (and payments). Must be a positive number. Numeric

Description

Returns the payments for a fixed interest rate loan over a specified integer term.

Discussion

PAYMENT() returns the fixed periodic Payment_Amount required to amortize a loan of the specified Loan_Amount at a fixed Interest_Rate over a given Number_Of_Time_Periods.

Example

To determine the monthly payment on a 30-year $100,000 mortgage at 7% per year:

payment(100000,(.07/12),(30*12)) -> 665.302