PAYMENT2 Function

Syntax

Payment_Amount as N = PAYMENT2(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_Amounts 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 fractional term.

Discussion

PAYMENT2() 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. PAYMENT2() is the same as PAYMENT() , except that it does not round the Number_Of_Time_Periods argument.

Example

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

payment2(100000,(.07/12),(30*12)) -> 665.302
payment2(10000,(.07/12), 12.5) -> 831.851133
payment2(10000,(.07/12), 13) -> 801.006379
payment(10000,(.07/12), 12.5) -> 801.006379

Note the difference between PAYMENT2() and PAYMENT().