CFI-Excel-eBook

The Corporate Finance Institute Excel
For month 2, we used the formula below:
We get the results below:
The above PPMT function returns the value $735.23 (rounded off to 2 decimal
points). In the above example:
1. We made monthly payments, so it is necessary to convert the annual
interest rate of 5% into the monthly rate (=5%/12), and the number of
periods from years into months (=5*12).
2. Since the forecast value is zero and we need to make monthly payments,
we omitted the FV and type arguments.
3. We get a negative value, which signifies outgoing payments.
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