How to use IPMT and PPMT to compute Interest and Investment paymen

[Guest]

How to use IPMT and PPMT to compute Interest and Investment payment, says, at
10 months period.

Thanks

 

[Guest]

hi,
you basicly have to create a table because both formulas key on balance due
and balance due drops with each payment so each month requires a new
calculation based on balance due.
the sentax and examples are in xl help.

regards
FSt1

 

[Guest]

I had tried to use IPMT to find interest earned in each of the quarters for a
given future value, but the sum of all interests earned (IPMT) for all the
quarters is not equal to Sum of PPMT minus Total PMT.

Example,

FV 5000
rate 2.50%
Years 1

IPMT PPMT pmt
1 $0.00 $1,238.34 $1,230.65
2 $7.74 $1,246.08 $1,230.65
3 $15.53 $1,253.87 $1,230.65
4 $23.36 $1,261.71 $1,230.65

Sum: $46.63 $5,000.00 $4,922.60

$5000.00 - $4922.60= $77.40

Sum of IPMT should have been $77.40.
There is difference of $77.40 - $ 46.63 = $30.77

Why? Did I wrong somewhere?