prepmt_payment_of_annuity_with_prepayment_.htm

Navigation: Templates > Guide to all Templates > Additional Libraries and Templates > Finance Library >====== PREPMT (payment of annuity with prepayment) ====== | |

**PREPMT**(*presentvalue,periods,rate,futurevalue*)

PREPMT | Computes the payment required to reach a targeted future value. |

presentvalue | A numeric constant or variable containing the amount of the present value of the investment. |

periods | A numeric constant or variable containing the number of periods in which a payment is made. |

Rate | A numeric constant or variable containing the periodic rate of return. |

futurevalue | A numeric constant or variable containing the amount of the desired or targeted future value of the investment. |

**PREPMT **determines the payment required to reach a desired amount (*futurevalue*) based upon a starting amount (*presentvalue*), a total number of periods (*periods*), and a periodic interest rate (*rate*). If payments occur at the end of each period then use the PMT function, which calculates interest accordingly.

Periodic rate may be calculated as follows:

PeriodicRate = AnnualInterestRate / (PeriodsPerYear * 100)

If the present value is less than the future value (annuities), payments are positive, and conversely, if the present value is greater than the future value (loans), payments are negative.

**Return Data Type:** DECIMAL

**Internal Formulas:**

where frac(periods) is the fractional portion of the *periods *parameter and

where int(periods) is the integer portion of the *periods *parameter.

**Example:**

** PeriodicRate = AnnualRate / (PeriodsPerYear * 100)**

** IF TimeOfPayment = 'Beginning of Periods'**

** Payment = PREPMT(PresentValue,TotalPeriods,PeriodicRate,FutureValue)**

** ELSE**

** Payment = PMT(PresentValue,TotalPeriods,PeriodicRate,FutureValue)**

** END**

prepmt_payment_of_annuity_with_prepayment_.htm.txt · Last modified: 2021/04/15 15:57 (external edit)