ERRORS IN TVM FUNCTIONS IN EXCEL 2003?

J

Jack Ham

As I understand the descriptions of the PMT, ISPMT, and PPMT functions, the
calculations returned for ISPMT and PPMTusing identical inputs should add to
PMT for the same inputs. Can anyone explain why the first period's interest
(ISPMT) plus the first period's principal (PPMT) don't add to the amount of
the fixed payment (PMT) for an amortizing loan with a fixed interest rate and
a fixed term?

I would appreciate any available assistance. Thank you.
 
P

Puppet_Sock

Jack said:
As I understand the descriptions of the PMT, ISPMT, and PPMT functions, the
calculations returned for ISPMT and PPMTusing identical inputs should add to
PMT for the same inputs. Can anyone explain why the first period's interest
(ISPMT) plus the first period's principal (PPMT) don't add to the amount of
the fixed payment (PMT) for an amortizing loan with a fixed interest rate and
a fixed term?

I would appreciate any available assistance. Thank you.
Click to expand...

Look at the function IPMT instead of the function ISPMT. The totals
there come out in agreement.

I can't figure out from the description what ISPMT is doing, but it is
not
doing what it would have to in order to match PMT and PPMT.
Socks
 
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